CNN’s web page had an interesting slideshow this past week. It was the top 20 debtor nations in the world. Most nations on the list were members of the European Common Market. In fact Greece one of the large debtors, has been in the news for possible default on its debt, shaking confidence in the stock market.
Not making the headlines are several other European countries that are even worse off financially than Greece: Spain, Portugal, and Ireland, the worst of the lot.
In my minimal background of economics, when your debt equals 500X to 1000X times your GDP…your bankrupt! This is the sad state of most of the European Union. Theirs is not a mere recession; it is a state of disaster. One has to pause and wonder if all those social programs like universal healthcare, subsidized housing, etc. are not to blame.
The debt is so high, that other than default, recovery not only is impossible; their current level of living seems unsustainable.
The United States, by the way, is also on the debtor list at #20. Our own level of “lifestyle” is also unsustainable.
