.:`=-~rANdOm~`-=:. Game Servers

.:`=-~rANdOm~`-=:. Game Servers (Read Only) => Discussion => Topic started by: cogsandspigots on November 07, 2011, 12:35:34 PM

Title: Europe is in serious shit
Post by: cogsandspigots on November 07, 2011, 12:35:34 PM
http://www.bloomberg.com/news/2011-11-07/sovereign-corporate-credit-default-swap-indexes-increase-in-europe.html (http://www.bloomberg.com/news/2011-11-07/sovereign-corporate-credit-default-swap-indexes-increase-in-europe.html)
http://www.csmonitor.com/World/2011/1107/As-Italy-debt-crisis-mounts-attention-turns-to-ousting-Berlusconi-video (http://www.csmonitor.com/World/2011/1107/As-Italy-debt-crisis-mounts-attention-turns-to-ousting-Berlusconi-video)

tl;dr version:

Greece and Italy are going bankrupt because they have extremely expensive social programs that, if cut, will cause massive protests.
France may be next.
Title: Re: Europe is in serious shit
Post by: TehHank on November 07, 2011, 01:08:17 PM
Im sure greece was going to be kicked out of the EU.
Title: Re: Europe is in serious shit
Post by: ursus on November 07, 2011, 04:41:51 PM
Quote from: TehHank on November 07, 2011, 01:08:17 PM
Im sure greece was going to be kicked out of the EU.

I didn't know a country can be evicted from a continent.
Title: Re: Europe is in serious shit
Post by: metalbeersolid on November 07, 2011, 06:31:21 PM
Quote from: gamefreak171 on November 07, 2011, 04:41:51 PM
I didn't know a country can be evicted from a continent.

European Union ya derp, and yes that seems likely.
Title: Re: Europe is in serious shit
Post by: Deacon on November 07, 2011, 09:58:41 PM
Quote from: gamefreak171 on November 07, 2011, 04:41:51 PM
I didn't know a country can be evicted from a continent.

My turn.

HAHAHAHAHAHHAHAHA
Title: Re: Europe is in serious shit
Post by: Dark Pacifist on November 08, 2011, 03:20:36 AM
Eh relax Africa oughta buy Italy no sweat problem solved.
Spoiler (click to show/hide)
Title: Re: Europe is in serious shit
Post by: TehHank on November 08, 2011, 04:45:46 AM
AUSTRALIA WILL LEAD THE WAY!
Title: Re: Europe is in serious shit
Post by: Nemisous on November 08, 2011, 02:05:32 PM
ive noticed a trend, ever since countries went off the gold standard and start basing there currency on there countries GDP they started facing inflation, debt and other economic problems. hell even the US is facing a major debt crisis.
Title: Re: Europe is in serious shit
Post by: Xrain on November 08, 2011, 02:38:21 PM
Quote from: Nemisous on November 08, 2011, 02:05:32 PM
ive noticed a trend, ever since countries went off the gold standard and start basing there currency on there countries GDP they started facing inflation, debt and other economic problems. hell even the US is facing a major debt crisis.

Sadly the going off the gold standard isn't the reason everyone has financial woes. It certantly could have prevented it as it would have limited spending.

The main reason everyone is having problems is poor fiscal policy. (IE Spending money you don't have)

The economies of the major countries are purely based on belief. The more people believe in your currency the more your currency is worth. What happened in these cases, because money is an abstract idea there are many methods to take advantage of peoples conviction in the power of their currency. So its easy to make a fortune out of thin air.

However while in small amounts these techniques don't have a wide spread effect, it became standard policy at many financial institutions.


So naturally eventually someone questioned what was being done in the financial market. And since it was a standard practice most of the people performing the action didn't really understand what they were doing. Once they did figure it out there was a bit of a O crap moment.

And poof people's conviction in the market and world currencies plummeted and now many places are facing economic collapse.


This is a nice video that sums it all up pretty well  :)

The Crisis of Credit Visualized - HD (http://www.youtube.com/watch?v=bx_LWm6_6tA&feature=player_embedded#ws)
Title: Re: Europe is in serious shit
Post by: Rocket50 on November 08, 2011, 03:18:17 PM
Quote from: Xrain on November 08, 2011, 02:38:21 PM

And because our banks have strict loaning and mortgaging policies, the impact of the global economic meltdown was really small compared to USA who just spashed out money for greed