Since the beginning of the blog the finance posts have been on the subject of how to maintain your personal budget, but today I will break from that and talk about Greece. Greece is a small European country on the Mediterranean Sea, with a population of around 10 million people. It is a member of the European Union (E.U.), which is an economic and monetary union of European Nations. You might ask yourself how this has an effect on my finances. Well if you own stock you might notice a drop in prices since Tuesday, which is when Greece defaulted on their loans to the E.U. and IMF (international monetary fund). This is the first time a major country has defaulted on their loans so there has been a lot of speculation on “what’s next” since this is uncharted territory. A few guesses have been: kicked out of the E.U., receive an additional loan, or accept the loan the EU had previously laid out. Greece is in a tough position, little room to play “hard ball” because everyone understands they are in a desperate state. The next few days will be very interesting as to if they stay in the E.U. and the future of the stock market.
P.S: This is a perfect example of how interconnected the world economies are, a country that size can send ripples through the US economy.
P.S: This is a perfect example of how interconnected the world economies are, a country that size can send ripples through the US economy.