Greece is becoming that annoying relative that just won’t go away. You know the cousin that comes to stay for a few weeks until they “get on their feet.” But months later you’re still waiting for the bathroom in the morning because they’re in the shower. Greece is Germany’s destitute cousin and German Chancellor Angela Merkel must have real patience to wait day after day to see if all the efforts to help her poor cousin Greece will pay off.
Let’s just imagine the world had let Greece default in May 2010, when the near bankrupt nation first needed money. Would the world economies have collapsed? …Probably not. Would we be in a deep global recession? …Well, we kind of are. By delaying its default the problem is getting worse. How is it that the E.U. can’t figure that out? I’ll give you three reasons.
For the second time in 12 months the Greek debt crisis is threatening to derail the already shaky global economic recovery. The country is close to default again and they want the core European countries, France and Germany, to bail them out, again. Last year Canada emerged unscathed, but this year, Finance Minister Jim Flaherty is saying our nation faces a “real danger” of contagion. If Greece defaults, Flaherty’s biggest concern is Canada’s banking system could be damaged by the ripple affects.