On this day in 2010, the Eurozone leaders approves a $145 billion loan to aid Greece in preventing the worsening of its finacial situation. The aid was given on the condition that Greece cut its public spending before it could receive the three year loan. The move was made as a preventive measure, in the hope that it would prevent Greece from becoming bankrupt. Consequently, it was feared that without loan, the collapse of Greece would result in a similar fate for other European Union countries.
Clearly, we can see that this went well, what with the Euro sovereign crisis only just appearing to stabilise. What I can't quite comprehend is how a nation lets itself get into a financial crisis such as this. I mean, I know that a lot of it just happens, but don't they have some sort of plan institutionalised that can help them prevent this further than just, "hey here's some more money!" Isn't it just like giving a drug addict more drugs and then saying, "but don't do drugs anymore okay?" I guess that I'll just agree to not undestand the financial world.
Oy vey...
Image available: http://blogs.ft.com/the-world/2011/11/eurozone-crisis-live-blog-9/#axzz1uHMOmAds
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