But, what’s happening now is not the same thing as 2008. The crisis then was worldwide. It was based on banks holding massive amounts of toxic assets. Greece’s debt is very small compared to the amount of debt extended in 2008. They have already defaulted on 60 percent of their debt. If they were to default on the other 40 percent, the banks would be able to also cover it.
The big question is contagion. If Greece defaults will Italy, Spain, and Ireland also default?
The second big question is should Greece rebuild with an austerity program or a growth based program? Listen to the podcast below to learn more about austerity verse growth. What do you think they should do?
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