Tuesday, August 28, 2012

Euro In Crisis


The world’s investment community has been looking at Europe for some time now wondering just when and where financial relief is going to come about. To date the bailouts and other methods of fixing their fiscal debacle have not been effective whatsoever. Presently the plans being proposed to fix the Greek crisis are appearing esoteric to even the most seasoned economists, and this does not bode well for the EU. Keeping the solutions to complex problems simple is the only way to combat this issue, most people are not equipped to evaluate the financial impact of certain policy decisions. Despite this lack of qualification many still choose to take the first route offered to them and move forward anyway. This sort of recklessness is why the Euro is currently suffering on the online forex exchange.


Despite the amount help Europe is receiving from the IMF and other sources it just does not seem to be enough. The policies themselves need to change, not the amount of money being funneled into the problem. Without changes in the problems that have brought Europe to this point in the first place the money might as well be flushed right down the drain. This fact has not been lost on investors who despite the support of the IMF has not shown much interest in supporting Europe. This is due to the fact that the austerity measures in Europe while thorough have not fared well with the people, in countries like Greece in fact there is little to no support of any kind.


Drastic measures need to be taken in Europe and they demand the support of the people to be viable, whether or not this is going to come to pass is anyone’s guess. The unfortunate fact is that until something has occurred there is little that can be said in terms of likelihood in one way or the other. Considering that Europe is going to continue to cling to many of their public programs such as healthcare and other public works. The entire picture of Europe has to change, and the people of Europe need to realize that they are approaching a system of pure chaos if they do not seize control. While this is not a rosy picture it is the honest reality for Europe, and in time it could become the same story for the US. The economy truly needs to be addressed without fear of the unknown, but with fear of an overall failure.


 









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