Greece has been going through a financial crisis for a few years. The European Union saved them from going bankrupt once, but the chances of giving them another lifeline looks doubtful unless the Greek government makes some radical changes. The European Central Bank is not supporting Greek banks anymore, and that means more financial problems for Greek citizens.
Folks at Boraie Development (njbiz) know that the immediate problem is Greece can’t make its 2.6 billion euro loan payment to the International Monetary Fund. That payment is due immediately unless Greek negotiators pull a last minute rabbit out their Phrygian hats. Meanwhile, stocks around the globe are feeling the effects of the Greek debacle. Some Americans don’t realize the severity of a Greek default. If Greece does default, the aftershock will be felt in financial institutions around the world.
Greece is not the only country experiencing debt issues. The Commonwealth of Puerto Rico recently said it cannot make its loan payment, and the Chinese stock market is taking a beating, but it will recover at some point. The meltdown of 2008 is still fresh in everyone’s mind. A meltdown in Europe could spread around the world if all the financial ingredients are in place to make that happen.