What happens when a country like Greece becomes bankrupt?

Question

What happens when a country like Greece becomes bankrupt? --

Answer 1

The big deal is because the top 20% of people - the upper class usually have their money in the form of rocks, securities, bonds, etc. During recc, the perceived value of these financial products decline. Sometimes the money used to buy these financial product isn't theirs. Borrowed money incurs HIGH interests, we all know that ARRGHH! so when countries like greece are bankrupt, there are a lot of ppl that will go bankrupt with it. It's seems like a big deal simply because all these rich people are making a ruckus because they failed to foresee this and they're gonna lose a heck lot of money.Awww. But because I'm not rich, and I don't think you are too, so we simply don't care. Hence NO BIG DEAL!

Answer 2

somebody has already given the quick answer. Greece as a rustic spends greater funds than it takes in taxes from its voters. Greece has been borrowing funds for some years to make up the version. Now that debt is so intense, the international locations doing the lending are not any greater keen to lend funds. Greece can't pay back what it owes, or perhaps pay off the pastime. the main important reason Greece is having such issues is as a results of its social regulations. human beings can retire early, with very solid advantages. Unions verify that working human beings get stunning pay type the fewest hours of artwork they are able to get via with. The retirees purely draw out greater in advantages than they paid in, so the government has to make up the version. period in-between those people who're working are no longer keen to artwork greater hours or pay greater taxes to develop the money the government has, so the government ought to the two borrow the money or decrease spending. yet cutting spending, pretty cutting the main costly courses like pensions, is greater desirable to riots and electorate throwing out the government. the different ecu international locations are affected, on account that Greece's financial issues pull down the cost of the Euro, which all of them use. to that end the tries to bail out Greece. yet whilst the Greek human beings do no longer settle for some hardships to hold their debt under administration, the ecu will ultimately ought to diminish their ties to Greece and enable the rustic sink, or danger all of Europe occurring the tubes.

Answer 3

economic recession for a while, then things return to normal



it happened a few times before, like in Russia or Argentina.