Greek Debt Crisis Essay

Greek Debt Crisis Essay
Abstract
The Eurozone is facing a serious sovereign debt crisis. Several Eurozone member countries have
high, potentially unsustainable levels of public debt. Three–Greece, Ireland, and Portugal–have
borrowed money from other European countries and the International Monetary Fund (IMF) in
order to avoid default. With the largest public debt and one of the largest budget deficits in the
Eurozone, Greece is at the centre of the crisis. The crisis is a continuing interest to Congress due to
the strong economic and political ties between the United States and Europe.
The roots of Greece's economic problems extend deep down into the recesses of history. After the
government dropped the drachma for the euro in 2001, the economy started to grow by an average
of 4% annually, almost twice the European Union average. Interest rates were low, unemployment
was dropping, and trade was at an all–time high. However, these promising indicators masked
horrible fiscal governance, growing government debt and declining current account balances.
Greece was banking on the rapid economic growth to build upwards on highly unstable foundations.
In 2008, the inevitable happened – the Greek debt crisis.
In this research paper, we will be covering the causes, financial repercussions and social
implications of this crisis. We will also be examining the methods used by the Greek government to
rescue the economy. To conclude, we will discuss possible resolution measures and objectively
forecast the future
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Student Loan Debt Is A Financial Crisis
As the demand for workers with college degrees increases the pile of debt students may graduate
with gets bigger and bigger. This problem is America's next sizeable financial crisis, but this crisis
however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing
market collapse did in 2007, which the country is only just now starting to see signs of recovery
from. The cost of a four–year degree has seen increases that surpass inflation and health care costs.
Likewise, the amount of student loan debt is now greater than both auto loans and credit card debt.
So, the question most frequently asked is, how has this happened? In 1965, the President of the
United States Lyndon Johnson signed the Higher Education Act of 1965. This allowed for many
things needed in the higher education system, one of them being low interest loans to students who
need financial assistance to get through college. This is where the debt problem begins, but does not
get out of control until the most recent past decade. Some of the drastic increase of debt can be
contributed to more people going to college, but can also be contributed to state schools receiving
less money from their respective states and needing to raise tuition and all other fees to cover the
difference. Schools do have other justifiable reasons to raise rates as well, such as utilities, upgrades
to the campus upon requests of the student population, employee wages, no one is willing to work

The European Sovereign Debt Crisis
The European sovereign debt crisis, which made it difficult or impossible for some countries in the
euro area to repay or re–finance their government debt without the assistance of third parties
(Haidar, Jamal Ibrahim, 2012), had already badly hurt the economies in "PIIGS", Portugal, Ireland,
Italy, Greece and Spain. This financial contagion continues to spread throughout the euro area, and
becomes a dangerous threat not only to European economy, but also to global economy.
Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of
the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal
the whole event, a comprehensive review of the background is ... Show more content on
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Specifically, they cannot devalue their currency to gain the export advantages as what they did
before. In addition, without common fiscal policies, the countries tend to over rely on the adjustment
of fiscal policies to solve their problems, leading bigger budget deficits.
The terrible internal economies control. The countries in euro area, especially Portugal, Ireland,
Italy, Greece, and Spain lost their control over the domestic financial situation. Specifically, Greece
had long standing financial problems. The government spent largely on the social welfare, and had a
great number of public servants who had extremely generous wage and pension benefits. Besides,
the government had little control over its budget deficit, leading a long standing financial budget
overrun. In Ireland, the estate bubble greatly destroyed government tax income and consumption
power of public. Portugal's lasting recruitment policies led to a great number of redundant public
servants. The Italian economy suffered from the high unemployment rate and high tax rate, and had
a slow growth in recent years.
Trade imbalances. Appendix Table 2 shows that from 1999 to 2007, German unit labor costs fell by
five percent, while these costs rose by 20 percent in Greece, 41 percent in Ireland, 19 percent in
Italy, 22 percent in Portugal and 28 percent in Spain. These competitiveness gaps offered Germany a
huge advantage in the trade, making it a better public

The Greece Debt Crisis
Chapter 1: Introduction
Introduction
Historically, financial crises have been followed by a wave of governments defaulting on their debt
obligations. The global economic history has experienced sovereign debt crisis such as in Latin
America during the 80s, in Russia at the end of the 90s and in Argentina in the beginning of the 00s.
The European debt crisis is the most significant of its kind that the economic world was seen started
from 2010. Financial crises tend to lead to, or exacerbate, sharp economic downturns, low
government revenues, widening government deficits, and high levels of debt, pushing many
governments into default. Greece is currently facing such a sovereign debt crisis and Europe's most
indebted country despite ... Show more content on Helpwriting.net ...
This is because one of the main reasons was the enormously high prices for the prices for the trips
and services for the visitors. Greeks decided to overcharge the tourist and at the end the tourist
started to choose often a close other place such as Turkey which has beautiful places with an
excellent service and much lower price. This situation has added one huger problem to the previous
one. Furthermore, in 2004 Greece was hosting for the summer Olympic Games. The costs for this
event were huge because the government had to build new facilities such as airports, roads, hotels
and the stadiums around the Athens. Greece also had to complete new transportation plan of
rebuilding the Athens infrastructure and clean up the whole city. Hosting the event cost almost 9
billion euro or 11 billion dollar at today's exchange rate, making the 2004 games was the most
expensive ever at that point. Greek taxpayers were on the hook for 7 billion euro, which did not
include the cost of extra projects such as a new airport and metro system. The cost created a high
budget deficit in the next year, beside the decrease in tourism. There were differences between the
Athens Olympic Games and 2000 Sydney also 2008 Beijing that Greece was not as wealthy or large
as Australia or China to absorb losses on Games. Most of the countries which hosted the Games
were at the time economic powerhouse and not developing countries such

Greece Debt Crisis Analysis
When global financial and economic downturn hit Europe in 2008, some of its debt–ridden and
deficit–bearing states were utterly ill–prepared. Greece, especially, became the crisis's first and most
abject victim (Pappas, 2013). In 2009, the incoming Panhellenic Socialist
Movement (PASOK) administration announced that the Greek government had been severely
underreporting its deficit and debt.
Both the domestic and international communities were at a loss at how to respond. Never before had
the Eurozone been presented with such a large financial crisis that could undermine the institution of
the European Union. A 20hav10 bailout package of 110 billion euros, forged by the 'troika'
(European Central Bank, IMF, European Commission), was ... Show more content on
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Many voters continued to violently protest in major Greek cities, complaining about how the
government had betrayed their wishes for no new austerity measures as seen in a July 2015
referendum on the topic. If Greece continues on the path of ignoring the wishes of voters and is
unable to find a balance between social welfare and debt management, the citizens' trust in the
government will continue to fall, which spells disastrous consequences for the state of democracy
(Ellanis & Lamprianou, 2014).
What caused the Greek state to stumble at the first signs of economic shock? Many political
scientists have argued that the root of Greece's economic crisis is political. Greece has a semi–
presidential system with reinforced proportional representation, meaning that the party that wins a
plurality of seats in parliament will be awarded an additional 40 or 50 seats out of 300
(Kovras & Loizides, 2014). Greece's first president after its re–democratization in 2014,
Constantine Karamanlis, hoped that this setup would create inclusive and pluralist political
institutions (Pappas, 2013). His vision was not unfounded: in Constitutional Choices for New
Democracies, Arend Lijphart states that proportional representation allows more parties to be
represented in the legislature, encouraging coalition building to achieve legislative

The Student Loan Debt Crisis
College, originally deemed as the pointer to guaranteed employment, financial stability, and an
indicator of success, has been declared in jeopardy. Topping the credit card debt and many
household debts, the student loan debt has been pronounced the next potential financial disaster in
the U.S. With 2014's numbers currently exceeding $1.2 trillion, the debt figures have reached about
twice of 2007's remaining debt (Akers, 2014). Gone are the days when a parent could send a child to
the state university to study their interests and finish off with a job offer, ensuring a respectable
future. The average balance for a 2014 college graduate is $32,500, which will be dragging out of
not only themselves but also their families (Rajan, 2014).
These fraught students display the future, and it's not looking too bright. With higher education
becoming a progressively distant dream for the average American, heftier loads will be landed upon
those who can scarcely afford to reach their aspirations. These students are not simple figures on a
statistical report, but they are young people at a point in their lives where they must be aided on the
basics and essentials of financial lingo and repayment plans (Rajan, 2014). The liability imposed on
the current generation can only be noted as atrocious and sleazy, obstructing any economic growth
that might've been projected before realizing the trap they have fallen into. Worsening as we speak,
The New America Foundation has declared that debt

Graduation Speech : Student Debt Crisis
When we think of college, many things come to mind. We think of young people looking to earn a
diploma with the hope of scoring a high paying job and a brighter future, leading the world in future
innovations, or we think of the loans and the debts that follow it holding these young adults back;
young adults that are meant to be the future of the world. An example of a well known leader who
once struggled with student debt is our own current president and his wife, Barack and Michelle
Obama. Both attended Harvard, a well known college that almost guarantees a bright future.
However, they both had about $120,000 in student loan debts; a debt that would not be repaid until
about 25 years into their marriage, and just 8 years before he was elected as president (It's Personal:
Obamas). If even the president (and presumably, other members of the senate) are troubled with the
student debt crisis, then it is time to do something about it.
When we were younger, we were told that we had the world at our fingertips and that anything was
possible. We could be anything we wanted and not have to worry about a thing, except maybe
disappointing our parents. However, as we grew up, it became quite clear that that is no longer the
case. The price of college has skyrocketed within the past 20 years, while the average income for a
family has remained relatively the same. With a college diploma becoming more and more
necessary to get a decent paying job and colleges being too much to pay for,

Student Loan Debt Crisis
Key informant interviewee Natalia Abrams, stated that "this is a time where media and politicians
are talking about student loan debt but they are only focusing on policy for the new college student,
but there needs to be a policy for the 43 million existing borrowers." There are two separate policy
issues that need to be analyzed in order to address the student loan debt crisis. Research shows that
there is a difference among default rates based on race and socio economic status. These differences
left unchecked can wreak social and economic havoc on society. While student loan debt crisis may
not be a crisis for all, the danger is the growing amount of debt that a significant fraction of
borrowers are currently saddled with that is preventing

Solving The Student Debt Crisis Essay
The student debt crisis has reached an all time high with debt reaching a total of 1.3 trillion dollars
across the United States.With tuition cost increasing,lack of scholarships and an increase of
government loans,student debt will continue to increase.The enormous amount of debt put upon
each student creates the inability of those students to help the economy grow.Our economy as we
know it is in shambles and decreasing the student debt significantly will help the economy
grow.Instead of debt owers putting that money towards the government where it won 't be used to
help decrease the student debt as we can see by the total debt, it should go to the community. Money
going to places such as purchasing homes,cars,consumer goods will help improve the economy.To
help alleviate the immense amount of student debt lenders should be required to forgive student
loans in cases where students are unable to repay their debts,decrease cost of attendance,and
increase scholarship opportunities from universities and implement more merit based
sholarships.Doing so would benefit the growth of the economy by increasing the job market,housing
market and would help businesses grow.
Pineda 2 Students on average have more than 25000 dollars in student loan debt they have to pay
back.Due to the incredible amount of debt certain issues arise of

Student loan debt has overtime become an unpleasant part of life for millions of Americans and
especially borrowers. It is possible to identify the types of people who went through college and
borrowed financial loans from those that went through college and did not go to college or those that
went but did not borrow. The debt crisis directly affects the families of the borrowers, those with
high debt burdens and advanced degrees. Despite the increased length in loan payment, the average
monthly payment has barely increased (Hansend, 2010) .This essay focuses on the problem of
student loan debt and offers a number of viable solutions towards the subject. The emphasis in
addressing the issue intendeds to suggest policies that focus on the immediate needs of the students
According to the report on Household Debt and Credit Developments released by New York Federal
Reserve Bank, trouble seems to have been brewing for students. America owes nearly US $ 1.2
trillion, which is more than three times the amount of debt a decade ago (Roots,2012).The increase
in amount of debt is partly as a result of increased student attendance in college whiles the other part
maybe due to the borrower who is the individual student, holding more debt (Roots,2012). The
department of Education in New York has released a nationally representative data showing that
college senior students took loans between the academic years 2007–2008 and 2011–2012, have a
median debt

Impacts Of The IMF And Greek Debt Crisis
The IMF and Greek Debt Crisis
11.02.2015
Naama Kates
IMF and the Greek Debt Crisis:
"The 'miracles' performed by credit are fundamentally comparable to the 'miracles' an association of
counterfeiters could perform for its benefit by lending its forged banknotes in return for interest. In
both cases, the stimulus to the economy would be the same, and the only difference is who benefits."
– Maurice Félix Charles Allais, 1988 winner of the Nobel Memorial Prize in Economics
(NobelPrize.org, 2015)
Introduction
In 2010, the IMF, along with European Central Bank and the then–sixteen members of the European
Union, drew up an economic bailout package in the form of €110 billion loan to 'rescue' Greece
from "sovereign default"–i.e. Greece's inability to pay back its existent debt. This action was a
response to the growing fear of default from (mostly private) investors around the time of the Great
Recession and resultant European debt ... Show more content on Helpwriting.net ...
According to Eurostat, (2013), the debt–to–GDP level in Greece had been over 100% since the
millennium, reaching 127% in 2009 and a staggering 146% the following year (after credit rating
agencies received reports of the growing debt ratio). This caused a crisis of confidence in the
market, which effectively shut the country out of the trade market, as risk insurance for potential
investors/creditors was so high (Wikipedia, n.d.).
The €110 billion loan came, in typical IFI fashion, with conditions which included structural
reforms, economic austerity measures, and mass privatization of government industries and assets. It
was officially launched in May of 2010 by the three aforementioned entities. (This group was since
nicknamed 'Troika', or тройка, from the Russian word for trio–most likely a play on the corrupt

European Debt Crisis
Introduction
Europe's debt crisis is a continuation of the global financial crisis and also the result of how Europe
attempted to solve the global financial crisis that brought an end to a decade of prosperity and
unrestricted debt. European attempts at defending itself against a deep recession, has now created a
new crisis of unsustainable and un–serviceable sovereign debt. In early 2010 fears of a sovereign
debt crisis, the 2010 Euro Crisis developed concerning some European states including European
Union members Portugal, Ireland, Italy, Greece, Spain,(affectionately known as the PIIGS) and
Belgium. This led to a crisis of confidence as well as the widening of bond yield spreads and risk
insurance on credit default swaps between ... Show more content on Helpwriting.net ...
Given this context, congressional interest in Greece's debt crisis is high. Numerous congressional
hearings in 2010 have referenced Greece's economic situation, including hearings before the House
Committees on Appropriations, the Budget, Financial Services, Foreign Affairs, and Select
Intelligence; the Senate Committees on Finance and Banking, Housing, and Urban Affairs; and the
Joint Committee on Economics. The House Committee on Financial Services has scheduled a
hearing for April 29, 2010, on the implications of Greece's debt crisis for credit default swaps.
Finally, Greece's economic situation was a major focus of discussion during Greece Prime
Minister George Papandreou's meetings with congressional leaders in a visit to Washington, DC in
March 2010.
During the decade preceding the global financial crisis that started in fall 2008, Greece's government
borrowed heavily from abroad to fund substantial government budget and current account deficits.
Between 2001, when Greece adopted the euro as its currency, and 2008, Greece's reported budget
deficits averaged 5% per year, compared to a Euro zone average of 2%, and current account deficits
averaged 9% per year, compared to a Euro zone average of 1%.7 In 2009, the budget deficit is
estimated to have been more than 13% of GDP. Many attribute the budget and current account
deficits to the high spending of successive Greek governments. Greece funded these twin deficits by
borrowing in international

The Latin American Debt Crisis
The Latin American Debt crisis did not occur over night, the crisis was many years in the making
and signs of its arrival were prominent in Latin American society. The reasons for its occurrence are
also expansive; some fault can also be place in countries outside of Latin America. The growth rate
in the real domestic product of many Latin American countries grew at a constantly high rate in the
decade prior to the crisis in the 1980s, this growth led to an increase in foreign investment, corporate
investment, and the world began supporting these developing nations (Ocampo). The foreign
investments into Latin America created a new international financial system that gave the foreign
banks access the funds to give massive loans to the ... Show more content on Helpwriting.net ...
The external shocks had a big role in how the crisis occurred; the increases in interest rates are
shown in the figures below found in "The Latin American Debt Crisis in Historical Perspective" by
Jose A. Ocampo: The graph shows the effect on Latin America, since much of the external debt was
contracted with these floating rates, and following the rise in the interest rates the commodity prices
were also hit. The graph also shows the extent of the shows on Latin America lasted until the early
2000s.
Subsequently, the interest rates reached a record high in the early 1980s because the Federal Reserve
attempted to slow down the global recession and in turn helped cause the crisis. The loans made to
Latin American nations were all based on the LIBOR rates, so the costs of each nations debt crew as
the rates grew. The high interest rates along with the global recession made exports slow and thus
many Latin American countries could not pay back their loans. Finally in August 1982 the finance
minister of Mexico declared that Mexico would not longer be able to pay the loans made to his
country and by year's end the other four major economies in Latin America followed, Brazil,
Mexico, Argentina, and Venezuela. Since many nations began defaulting on their loans, banks
essentially froze lending to Latin America, for the remainder of the 1980s banks would decrease the
amount of wealth put into these nations

The Nationwide Student Debt Crisis
Fact or Fiction: The Nationwide Student Debt Crisis In the United States, it is generally accepted
that college (or any form of higher education for that matter) is a wise investment that each and
every individual should strive for. Each and every year thousands of parents open college funds and
future investment plans to ensure that once their child is of age he or she can participate in quality
educational programs. While college attendance rates are at a positive all–time high, right behind it
follows an astounding $1.3 trillion dollars in student loan debt. Let's face it, college is expensive,
and it's only getting worse. Could the outstanding quantity of student loan debt be the next national
crisis? Individuals dealing with student debt "are postponing marriage, childbearing and home
purchases, and pretty evidently limiting the percentage of young people who start a business or try
to do something entrepreneurial," said Mitch Daniels, president of Purdue University and the former
Republican governor of Indiana (qtd. in Holland). Because it's almost universally accepted that
college is the key to success, students are finding themselves falling head–over–heels in large
amounts of student debt justified only by these universal standards. Student debt doesn't just burden
the individuals who are liable, the sheer amount of debt has begun to rattle institutions and financial
patterns that are at the core of American society (Holland). Money isn't the only issue

Student Debt Crisis And Its Effects On The Economy
student debt crisis has reached an all time high with debt reaching a total of 1.3 trillion dollars
across the United States.With tuition cost increasing,lack of scholarships and unpaid back
loans,student debt will continue to increase even higher.The enormous amount of debt put upon each
student creates the inability of those students to help the economy grow.Our economy as we know it
is a loop and decreasing the student debt significantly will help the economy grow.Instead of putting
that money towards the government where it won 't be used to help decrease the student debt as we
can see by the total debt, it should go to the community, such as purchasing homes,cars,consumer
goods,sales tax which will help improve the economy even more.Crippling student debt is stifling
the growth of the U.S. economy because it inhibits graduates from being able to spend money on
consumer goods and home purchases. To alleviate this, lenders should be required to forgive student
loans in cases where students are unable to repay their debts,decrease a cost of attendance,and
increase scholarship opportunities from universities.Doing so would benefit the growth of the
economy by increasing tax revenues, unfreezing credit markets, and creating jobs.
Pineda 2 Students on average have more than 25000 dollars in student loan debt they have to pay
back because of this debt; The incredible amount of debt creates issues of students struggling to pay
that money back.In order for students

Debt Crisis In America
Debt crisis America was once known for being one of the richest nations, now facing a modern day
depression. America starting noticing the economy going down during the collapse of the Lehman
Brothers, and the global banking failure in 2008. This debt has become a burden amongst college
students and the middle class Americans. This long lasting debt seems to be a drag and has no
chance of getting better anytime soon. With Americans in trillions of dollars in debt, college
students are one of the few American who are suffering. We are seeing a larger amount of people
going to college. Most college students will take out loans in order to pay for school hoping that
they will

Causes Of Debt Crisis In Tanzania
Debt Crisis in Tanzania
Numerous developing nations worldwide are in debt, causing both financial and humanitarian
issues, resulting in being unable to pay for their citizens' basic needs. These basic needs include
accessibility to sanitary water, healthcare and education. Debt in developing countries such as
Tanzania got rapidly out of control in the 1970s and 1980s. This was when developed countries such
as United States, United Kingdom and Saudi Arabia lent out billions of dollars to less developed
countries, like Tanzania and Nigeria, at floating interest rates to increase the lenders' revenue. This
eventually led to the loaner falling into a debt crisis.
As developing counties were struggling financially, developed countries used it to their advantage in
order to make more money. Developed countries, like the United States, did this by loaning out large
amounts of money in their currency (USD) to developing countries, like Tanzania. This benefitted
the United States as the value of USD was rising, the value of Tanzanian shilling was decreasing,
which ended up being a larger amount of debt than the one initially owed. Tanzania in 1986 owed
approximately $3.9 billion to lenders. By the end of 1992 Tanzania owed over $6 billion. This
monumental amount of debt owed for a developing country like Tanzania is near impossible to
repay. Thomas Sankar, president of Burkina Faso says, "The debt cannot be repaid. If we do not pay,
our creditors will not die. We can be sure of that.

The Problem Of Student Debt Crisis
In 1976, the average cost to attend a four year public university was $2,175; today, the average cost
to attend a four year public university is $25,000 (Snyder). This means it is 1150% more expensive
to go to college in The United States today than it was 30 years ago. This obviously would create a
problem on how we as people are going to pay for our higher education. Today college has become
almost a necessity to have a satisfactory life, and with these rising prices some individuals believe
student loans are the only option. There are many reasons as to why the prices have risen, but the
one undeniable fact is that this has created a problem within our country. Which, is known as the
student debt crisis, and it has been on the rise the past couple years. This problem is affecting people
all around the United States, and is causing multitude of problems for them all because they wanted
to pursue higher education. Wanting to better your opportunities by bettering yourself is not
something that needs to be punished, and sadly that is what is happening. This problem is something
that needs to be fixed for the sake of Americans and our economy, but will also take time and a
multitude of steps to correct. There are currently 40 million Americans that have student loans they
are still paying off. Along with this 70% of all students graduating with a bachelor 's degree will
graduate with debt. If this is not convincing enough look at the class of 2015, they have graduated
with

Greece
Background on Greece's Debt Crisis "You cannot spend more than (what) you earn...you should not
borrow more than (what) you can afford." This, according to an editorial published by the Greek
newspaper Kathimerini, may be the lesson Greeks are now learning the hard way.1 Unrestrained
spending of successive Greek governments over a long period may have driven the country's budget
and current account deficits.2 Greece borrowed heavily from international capital markets to finance
public sector jobs, pensions and other social benefits.3 As deficits and the country's debt burden
grew, the governments just kept on borrowing. 4 When Greece joined the eurozone in 2001, it
gained monetary stability and was able to borrow at lower interest rates – ... Show more content on
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With the lowest rating in the eurozone, Greek bonds are now viewed as a highly risky investment by
foreign investors.9 Consequently, Greek bond yields increased in 2010. Greek 10–year bond yields
used to be 10 to 40 basis points above German 10year bonds prior to the crisis. However, with the
crisis, the spread increased to over 400 basis points in January 2010. This high bond spread further
underscores investors' loss of confidence in the Greek economy. 10 In April 2010, Eurostat, the
Statistical Office of the European Communities, estimated Greece's budget deficit to be 13.6% of
GDP – almost a full percentage higher than the 12.7% estimate
1 2
"Back down to earth with a bang,"
http://www.ekathimerini.com/4dcgi/_w_articles_columns_1_08/03/2010_115465 For example, see
"Is Greece Heading for Default?," Oxford Economics, January 29, 2010. "Q&A: Greece's economic
woes," http://news.bbc.co.uk/2/hi/business/8508136.stm "Q&A: Greece's financial crisis explained,"
http://edition.cnn.com/2010/BUSINESS/02/10/greek.debt.qanda/index.html 3 Wikipedia. "2010
European Sovereign Crisis," http://en.wikipedia.org/wiki/2010_European_sovereign_debt_crisis 4
"Back down to earth with a bang,"
http://www.ekathimerini.com/4dcgi/_w_articles_columns_1_08/03/2010_115465 5 "Q&A: Greece's
economic woes," http://news.bbc.co.uk/2/hi/business/8508136.stm 6 European Commission –
Eurostat. "Europe in Figures: Eurostat Yearbook 2009" 7 Congressional Research

Causes Of Student Debt Crisis
A university education has long been a staple of the American Dream. Millennial students, however,
have been rudely awakened to see their dreams turn into nightmares. Millennials have been forced
to lease their livelihoods to the government and private corporations in hopes of obtaining a better
future. They find themselves being scolded by politicians and citizens alike for being, 'lazy',
'entitled', and 'ungrateful.' They are blamed for the trend of increasing student loans and defaults
because of their 'carelessness' when the root of the problem originates from the decades of
government recklessness and public neglect. Students are forced to take out loans to finance their
education because of perpetually decreasing federal funding and upon graduation the students who
are fortunate enough to be employed don't earn enough. Without well–paying jobs, graduates cannot
pay back their student loans and thus find themselves in a perpetual cycle of indebtedness; a cycle
which can lead to not only the next economic recession, but can also lead to a social regression. In
order alleviate the student debt crisis and revive the American Dream, the government must reform
the federal student loan repayment program by extending coverage to all students.
The student debt crisis is unfortunately, incorrectly characterized by most as the increasing number
of students who need to take out loans to finance their education. In actuality, the crisis is not
necessarily about the amount of debt,

The Current Debt Default Crisis
This policy memo addresses the current debt default crisis in Argentina. Despite the fact that 93% of
the bondholders accepted reduced payment due to the bankrupt of Argentina, the two hedge fund
NML Capital and Aurelius Capital Management have demanded full repayment of the $1.5bn
(£920m) they are owed, and have sued to prevent the country from paying back only its restructured
bond . To relief the dilemma after July's ruling, the financial sector should persuade the 93%
exchange bond holders waive the RUFO to alleviate the current financial pressure over the next few
months.
Problem Statement and Strategic Issues
The Argentina's debt default crisis this year could be trace back to 2001's crisis. After that, the
government begin to ... Show more content on Helpwriting.net ...
One helpful method to restore this mess is to persuade at least 75% of our existing exchange bond
holders to waive the RUFO clause in order to avoid the hundreds of billions of new obligations
before RUFO expire, while in the meantime continue seeking financial assistance to pay back
holdout and restore our reputation. Rapid actions are required to solve this urgent crisis.
The importance of Argentina back to bond market is so self–evident. The low foreign exchange
reserve, which is totally $290 billion with only $160 billion available, is obvious insufficient to debt
repayment, let alone other use of foreign exchange reserve. Normally countries with similar
situation will choose to financing from bond investors. However being abandoned international
bond market makes even high interest rate sovereign bonds is too risky for investors and will
become more difficult to restore access to the world's capital markets without figure out the default
with no delay. This means the exchange bondholders have to receive their money as soon as
possible. Since there are already a group of bondholders begin to work with Deutsche Bank to
remove the RUFO clause , our government should send officials to help push enough creditors
approve this decision and sign the supplemental indenture. Moreover, government could conclude
new terms (on–table or off–table) to give extra compensate to exchange bondholders,

The Third World Debt Crisis
As of now there are many third world countries that are in debt and the one that I am going to be
focusing on mostly is Africa. The third world debt crisis has to do with some of the poorest
countries around the world that are in deep debts because they are not able to pay back loans that
they were given to a while back. It is very hard for them to come up with the money and as time
goes on little by little the amount keeps on increasing. This debt started back when first world
countries had very large amounts of money and went ahead and loaned a good amount to the third
world countries for development projects but now they have fallen behind in trying to keep up with
their payments. In the Journal Cleaning up Third World Debt Without Getting Taken to the Cleaners
it mentions the amount of debt these third world countries are in. Bulow and Rogoff write, "As of
mid–1989, the highly indebted Countries owed roughly $300 billion to commercial banks in
government and government–guaranteed debt (p. 32)." As I kept reading they talked about different
assumptions they came up with, about how and what they are going to do. One assumption was how
once two–thirds of their debt was forgiven by having others help out; the countries with the most
debt would have to pay off the rest.
Many people would agree that it is not right for the third world countries to be paying debts that
they aren't able to pay for. They would have to give up pretty much everything to try and pay the

Will Free Colleges Solve The Student Debt Crisis?
Will Free Colleges solve the Student Debt Crisis? Every American student has a dream to go to
college and to be debt–free. Due to the upcoming presidential elections, candidate Senator Bernie
Sanders wants to introduce a bill that would cover the tuition costs for students who attend two and
four–year institution. This question makes many Americans wonder, will free public colleges solve
the student debt crisis. Although free tuition would help stop the fast–paced growth of the Student
Debt Crisis, it is probably not going to fix this problem completely.
What is a Student Debt Crisis? The student debt has reached to being over $1.3 trillion and keeps on
growing. Magdalena Kay the author of "A New Course", defines this problem as the "Tuition costs
are hitting astronomical highs–approaching the average American's annual salary–and yet students
apply to college in massive numbers, apparently undeterred by the prospect of massive debt or the
impoverishment of their parents' bank accounts, or both" (Kay). Student Debt Crisis has reached to
being the second largest source of debt in America. While tuition costs are rising every year, the
student debt crisis will continue to grow, and even free public colleges will not help fix the issue.
Considering on how many people have taken student loans to attend colleges and universities, but
never had the opportunity to complete them, and then had a big loan they had to pay off. Magdalena
Kay observes, "Society does not change overnight

Essay On Student Debt Crisis
In commonality to American society has been our ongoing debt crisis regarding college loans.
Increasingly, achieving higher education has resulted in students to take a substantial amount of
loans in order to attend a 4–year university. The United States has acquired debt crisis in recent
years due to the massive $1.4 Trillion dollars acquired in student loans. Nations such as Sweden and
Australia have similar lines as the United States; these countries have fixed their student loan issues
by basing the payments on your earnings and allow halts in payments if earnings drop. These
adaptations have allowed these countries to avoid having a crisis. Compared to the American model,
which lacks functionality and efficiency, the U.S. expects full repayments in an unrealistic short
amount of time. "The lengths of debt payments should align with life assets," (Dynarski 1). Does
this have the ... Show more content on Helpwriting.net ...
We have become driven to accept the burden of debt and have developed into a norm in American
adulthood. In some aspects, it has made the seriousness of the occurring debt to become of less
significance. This sense of pettiness allows the opportunity of attending a university less
approachable because the cost could be seen as a liability. It's prevalent, that countries that have
created a system to benefit their citizens have promoted progressive changes. United States are more
than capable; countries such as Australia have greater income equality and borrow a similar amount
as Americans, but don't pay until earning over forty thousand dollars (Dynarski 1). This ensures if
one doesn't feel limited in their society, it heartens the best of minds. In the competitiveness of
globalization, education must be deemed as a right instead of a luxury. In general, our culture has
become dis–unified in the topic of education and has ought to look elsewhere to be

Essay on National and World Debt Crisis
From the dawn of time, everything has some sort of value. Currency differs around the world, but
one thing consistently remains the same, everything comes with a cost. As the world has progressed,
currency has become more sophisticated allowing for accurate exchange and proper payments.
Unfortunately, however, as the refinement of money has progress so has the accumulation of
national and world debt. Countries all over the world are facing debt crises, brought on by the credit
collapse in the year of 2008. Community services, local jobs, and over employment are being cut
and local possessions are being sold, in a last ditch effort to balance budgets that cannot be stabled.
The reason the budgets are so out of line are because the flow ... Show more content on
Helpwriting.net ...
The product is that European nations cooperatively are being swallowed by debt that they cannot dig
themselves out of. Today we currently have over fifty–two trillion dollars in global public debt,
America, Europe, Asia, Australia and parts of South America all ranking as the highest in debt, and
every second someone is taking on more for which they cannot pay. This global issue affects every
person of every age. It effects adults by the amount of taxes that are forced upon them to help repay
national debt, it effects the younger generation by having to live in low–income homes because of
the amount of money their parents must pay. As my generations is coming of age, it is now up to us
to become more responsible and do your best to fix global debt. To escape the debt of the global,
national and local bankers, the authority to create a general money supply needs to be reinstated to
national governments. Other alternative options include having legal tender issued directly to
national treasuries that can then be spent on national budgets. Alternatively, we can publicly possess
banks so we can dissolve the nation's credit and lend it to the people interest free. The only other
options I see personally, is to shrink the size of our government. We would not lessen the power of
the local powers, but if we had less major figureheads, we would be paying fewer of the highest
salaries. The massive groups of government can be found in every country.

The Debt Crisis Of The United States
During presidential bids for the White House and Congressional deadlines for increasing the debt
ceiling, huge debates break out as to the enormous amount of debt incurred by the federal
government. Throughout our nation's history, national debt at this magnitude is a new things. The
accumulation of this amount of debt has its consequences, especially when the debt hits the nations
GDP (Gross Domestic Product), or the revenue the nation takes in per year.
When the colonies declared out independence for Great Britain, we were forced to borrow money
from several countries in order to finance our war. Initially, the colonies just borrowed from France
under the sly negotiations of Ben Franklin. Congress, who authorized the loans, also ... Show more
content on Helpwriting.net ...
in debt that has only increased in the last three administrations. A major factor affecting the last
three administrations deficit spending has been the wasteful use of taxpayers' dollars. CSN News got
a copy of Oklahoma Senator Tom Coburn's list of wasteful government spending. Out of the
compiled list, CSN News took the top twenty and published what they consider the "worst" ways
the government is spending our money. The list includes, "Swedish massages for rabbits: $387,000,
Teaching Mountain Lions to Ride a Treadmill: $856,000, Studying how many times "hangry" people
stab a voodoo doll: $331,000, Studying the gambling habits of monkeys: $171,000, Funding
Climate Change Alarmist Video Game: $5.2 million, Developing a real–life Iron Man Suit: $80
million, Government Funded Ice Cream: $1.2 million" (Kalin, C., 2014, October 23)and several
others. Wasteful spending of this magnitude has contributed to the financial crisis that the country is
in today. Wasteful spending has also come in the form of unnecessary regulations. The EPA
(Environmental protection Agency) is just one of the agencys that money is wasted on. While it is
true that the EPA does serve as a benefit to society in some respects, such as keeping our water
clean, they use additional money wastefully. The Daily Caller ran an article of what Republicans
were after the EPA for in light of wasteful spending. The

Causes And Effect Of The Debt Crisis Essay
What is the European Debt Crisis? The European Debt Crisis is the failure of the Euro, a currency
that ties seventeen European countries together. In this paper, I will be describing the cause and
effect of the debt crisis along with what would happen if the European Union stayed with the
economy they have. Then what I believe is the best solution to fixing the debt crisis.
Causes
Formation of European Union
Adoption of the Euro
Increasing Debts
Large Amounts of Borrowing
High Interest Rates
Large Government spending
High Taxes
Paying Debts with Barrowed Money
Monetary Inflexibility
Greece on the brink of defaulting
There are many causes for the debt crisis to start. Before world war II Europe had very strict trade
barriers between countries examples being currency exchange fees and trade tariffs. Then World
War II happened and was so detrimental to Europe they couldn't continue to have such strict trade
barriers. The barriers were then slowly removed with the first barrier removal being steel and coal.
This worked well enough that it caused twenty–seven countries to sign the Maastricht Treaty thus
forming the European Union (UN). This made trading throughout all Europe easier which caused
more trade to occur within Europe.
In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the
adoption of the Euro these seventeen countries discontinued their old currencies and monetary
policies. Monetary Policies

Student Debt Crisis Analysis
Debt is something many individuals can relate to, especially, students. Taking student loans, it is not
amusing or thrilling. Nevertheless, it cannot be compare to a whole nation in crisis.The US and
many other nations experienced a credit crunch 2007–2008 that led to the economic crash 2008–
2009, which led US to a catastrophic state from that point and on. While looking at this map and
comparing several countries in the globe, there is a possibility that this crisis could have been better
handled had the nation taken a more symbiotic approached. First, it seems as if the US could have
borrowed less and Second the US could have implement other measures to help the economy re–
growth.
I, myself, I am not expert in economy; nonetheless, will try to get my point across. Policy makers,
economist, bankers, and so on, usually advise is: do not take a loan unless the person, agency,
country know, or at least have a plan on how to repay. In fact, ... Show more content on
Helpwriting.net ...
It is true the nation needed to borrow from China; nevertheless, did the country need to continue to
borrow at such high speed? Maybe, but not one can say for sure. For the sake of the argument, let us
imagine for a second that US could have borrowed money once, and the come up with ways to
capitalized this many and work on paying our debts. Did the US do that? I don't know. But if US
did, the country did not try hard enough. Had the US taken a more symbiotic approach and utilized
the money to, not only revitalize our economy, but to lead the country to become once again self–
sufficient, the situation right now could be different.
In conclusion, would it be possible to achieve self–sufficiency at this point? Can the US become
debt free? And if so, would a symbiotic approach, which is an implementation of both borrowing,
and capitalizing this money to leverage a sustainable growth, be the best way to fulfill this? Well,
one can only

Latin American Debt Crisis And Its Results
LATIN AMERICAN DEBT CRISIS, THE SOLUTIONS AND ITS RESULTS.
As it known the debt crisis of the 1980s is the most traumatic economic event in Latin America's
economic history. During the "lost decade", the GPA fell from 112% to 98% of the world average,
and from 34% to 26% of the developed countries average. Development countries were giving loans
to Latin American countries to enable them to straighten their economies. However, they have had
difficulty repaying their debt. Latin American borrowing from US commercial banks and other
creditors increased dramatically during the 1970s. At the end of 1970, total outstanding debt was
only $29 billion. but by the end of 1978, that number increased to $159 billion. By 1982, the debt
level ... Show more content on Helpwriting.net ...
Secretary Baker underlined the importance of foreign and equity investment as non–debt–creating.
This can have a compounding effect on growth by bringing innovation and technology and help to
keep the capital domestic. The plan proposed the private banks and institutions to keep lending to
the indebted countries. The banks could provide new loan of $20 billion over a three years period
and the World bank and the Inter–American Development Bank could contribute an additional $9
billion. The Baker plan called for an annual increase of around 2.5% in commercial lending but the
bankers were uneasy with this request because the plan was reliant on continuing accumulating debt
to finance growth. Without strong assurances on the new loans, it would be very difficult to increase
international spending. The Baker plan had mixes results. The plan was efficient towards the 15
largest debtors and it neglected the needs of smaller countries. A few of the worst indebted countries
had made progress in adjusting their external sector during 1986–1988 and the threat to the
international banking system has subsided, for the time being. The plan failed because the new
lending proposed was insufficient. Also, the debilitating effects of high interest rates and low
commodity prices were not addressed. There was not one significant contribution that it has been
shown that

The Debt And Credit Crisis
"Panic was spreading on two of the scariest days ever in financial markets, and the biggest investors
were panicking the most. Nobody was sure how much damage it would cause before it ended"
(Nocera, 2008, pg. 1). This is what happened as the financial crisis spiraled out of control in 2008 as
bankers, investors, and insurance companies realized what they had done. The basic outline of the
crisis looks mainly at the mortgage and credit disaster that was caused by the bursting of the
"housing bubble", but the main causes can be traced back to huge developments that shaped the
American political economy and its policies within the last 50 years. While we do see this monetary
motivation and over confidence as an underlying theme of the mortgage and credit crisis, there are
other factors that contributed to the disaster. Some examples are an extremely strong and influential
financial sector, lack of regulations from the U.S. government, and the neoliberal shift of the 1970s.
While the mortgage securities and credit crises are recognized to be the immediate causes of the
financial crisis of 2008, I argue that the strong financial sector and neoliberal shift in the 20th
century are ultimately what set the stage for the financial crisis, making it hard for the U.S. to
persecute banks and investors for the financial misconduct during this time. First, the financial
sector is one of the only institutions in the U.S. that remains as an underlying, constant and strong
factor

What Is Puerto Rico's Debt Crisis
As well all know Puerto Rico is under a debt crisis of 70 billions of dollars , the fiscal position is
unsustainable, the population is falling, and there is no growth. All those 4 issues are the responsible
of how the situation is going in the island. More than 4 billion in annual tax revenues fund debt
service and are not available for public service.The total public debt of Puerto Rico has nearly
doubled over the past decade.The accumulation of debt accelerated when the island's government
began borrowing no to invest in infrestucture , but to cover budget shortfall. The biggest controversy
during this crisis is that Puerto Rico can not declare in bankruptcy that's why the United States will
create a new federal law called PROMESA signed

Financing For Loan And Debt Crisis
In America today, the total consumer debt was $11.52 trillion, and of that, student loans account for
$1.08 trillion and that number is growing larger and larger every year (Hiltonsmith, Robert). A large
portion of the population undoubtedly feels the burden of these statistics. Seven out of every ten
college seniors has reported having to take out one or multiple student loans so that they can to
afford to go to college (Hiltonsmith, Robert). The results of this outstanding amount of debt does not
just affect the United States negatively for the obvious reasons such as lower credit scores and
perpetual expenditures towards lenders. This loan and debt crisis has also led to an even larger
disparity between the lower class and the upper ... Show more content on Helpwriting.net ...
Germany recently revoked the policy of college tuition in all providences nationwide, and with free
tuition, more and more students every year can attend college (O 'Shaughnessy, Lynn). Germany is
not the only country to apply this policy towards education either; Spain, France, Italy, Malta,
Sweden and several others all offer tree tuition for public universities (Noak, Rick). For that reason,
the solution to some of the aspects of the student loan debt crisis should be adapted from policies
currently in effect in these European countries. Improving upon the models that countries such as
Germany have implemented will better prepare the United States to create a successful tactic to
tackle one of the country's biggest dilemmas. There are a few complications that will have to be
addressed. One of the methods used to fund the tuition of the citizens of these countries is through
tax money (O 'Shaughnessy, Lynn). However, in order for the United States to afford to do this, the
taxes will most likely have to be raised. Another problem that has arisen in some of these countries
is under funding, there simply is not enough money to fund the school comfortably and to pay for
tuition at the same time. These hurdles and others are what makes this problem so significant and
pervasive, but unless it is addressed somewhere, no matter how small the solution, it will never be
fixed.
Robert Hiltonsmith, a policy

Student Loan Debt Crisis Essay
Student Loan Debt Crisis What do you think of when you hear the words college graduate? Well, in
most scenarios, these words would be exciting to someone that just graduated college who have put
in years of hard work and dedication to better educate and promote themselves for their future
careers. Sadly enough, this is too far common not the case. In today's society, students are
graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering
from a recession and jobs difficult to come by for a lot of graduates with bachelor's degrees, the
student loan debt in the United States is bound to be a major crisis that could severely weaken and
crimp the economy even more in the coming years. In the United States today, the number of
students graduating college with student loan debt is quite astonishing. In the article titled, "How the
$1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy", we will
examine and break down the student loan debt crisis by the numbers. Today, almost two–third's of
students graduating college are graduating with an average of $26,000 in debt. For most students,
$26,000 is a lot of money when the average annual income for a first year graduate is only in the
mid $40,000 a year range. According to the Consumer Financial Protection Bureau, student loan
debt has reached a new milestone, crossing the $1.2 trillion mark (Denhart, 2013, Introduction, par.
2). With student loan debt levels

Student Finance : Student Debt Crisis
Executive Summary:
A decade ago, student loans barely existed. Today, however, American students borrow up to couple
million dollars a year to attend college. An entire generation is burdened with debt, and affected by
the modern phenomena known as the "student debt crisis." In recent years, student loan borrowing
rates have risen notably, leading to concern about the public financial risks associated with the
financial challenges faced by many students. Of late, the United States government has given out
about $170 billion in financial aid annually in an effort to encourage students to attend
postsecondary education. Such funding are usually supported by research that consistently finds
positive and growing average economic benefits of ... Show more content on Helpwriting.net ...
In fact, in the past, even if you were a college graduate, you were considered to be in the minority of
the society; however, today, a college degree is fundamentally a requirement for any majority of
careers. As the need for a college degree increased, the less affordable it became, therefore, student
loans became a must. Although student loans do help students with a higher education, they can also
get those individuals into tons of debt. Even though we can all benefit from a college education, the
future looks pretty barren for those with student loans. The future of college tuition, and in another
word, student loan; seems to be going only up with no release in sight. In order to get a better
understanding of why, this might be a good time to look back at when the first federal student loan
and grant programs were established and how it has fueled the rising tuition costs.
Back in 1940, the number of graduates numbered only 186,500. And by 1950, the number of college
graduates nearly tripled to 432,058. For the population during that time, this meant that less than 5
percent of adults 25 and older in the U.S. only had a college degree. Of that total, about 109,546 of
them were just men. However, by 1970, the number of college graduates just receiving a bachelor
degree had increased to 839,730. By this time, 68% of federal aid to college students was in the
form of

The Latin America Debt Crisis
The Latin America debt crisis
What Happened
Both internal and external for Latin Americas roller coaster economic performance in what was
known as the crisis. During the 50's and 60's there was favorable conditions in place to maintain
steady employment creation, capital investment and overall economic expansion. But this period
ended in 1973 amid the first world oil crisis rocked the world economy and caused an era of debt–
led growth among the oil importing Latin America countries. Latin American countries were hit by a
slow down in economic growth. The import bill in these nations sky–rocketed and exports saw a
massive slump as demand for Latin American products fell abruptly as the world economy slowed
down. When a second oil price ... Show more content on Helpwriting.net ...
The governments limited their costs by slashing social spending; education, health, social services,
etc.., devaluing the national currency via lowering export earnings and increasing import costs,
creating strict limits on food subsidies, cutting workers jobs and wages, taking over small
subsistence farms for large–scale export crop farming and promoting the privatization of public
industries. Most countries suffered a recession and often depression; and the poorest of the poor
were most affected. As Latin America's economies stagnated, per capita income plummeted, poverty
increased, and the already wide gap between the rich and the poor widened further. The debt crisis
seriously eroded whatever gains had been made in reducing poverty through improved social
welfare measures over the booms of the 60's and early 70's. Poverty grew 50 percent; malnutrition
40 percent; children were increasingly recruited into the drug trade and prostitution; long–term
unemployment and its adverse social effects increased; the weakening of local communities and the
growth of crime and an epidemic of homicides, are but a few of the many dilemmas that the debt
crisis caused.
In August 1982 Mexico announced to the international financial community that it did not have
enough external liquidity to fulfill its financial obligations and requested a 90 day rollover of the
payments of the principal to prepare toward definite restructuring

Greece : The Greek Debt Crisis
In 2009, The Greek debt crisis began. This crisis is still ongoing today, but there have been many
changes that occurred in Greece. This is also known as the Greek Depression. It is part of the
ongoing Eurozone crisis, which was generated by the global economic recession which started in
October of 2008. It is said to be caused by a combination of a weak Greek economy and an overly
high structural deficit and debt to the countries ' government debt and the gross domestic product.
Later in 2009, the question/ fear of sovereign debt crisis, which is the failure or refusal of the
government to pay back debt in full, developed concerning Greece's ability to even meet its
obligations of paying its debt. This all led to a full blown crisis and risk insurance on credit default
swaps, which are pretty much giving out loans to help pay off some of their debts.
There was a downgrade of the Greek government in April 2010 that alarmed the financial markets.
Bond yields rose so high that private capital markets were no longer an option for Greece as a
support foundation. In May 2010, the Eurozone countries and the International Monetary Fund gave
Greece a "bailout loan" of $110 billion, conditional on compliance with 3 conditions 1.)restore fiscal
balance 2.) privatization of government assets worth $50 billion by the end of 2015 to be sustainable
3.) to improve competitiveness and growth prospects. Sadly, Greece worked slower than expected
and they needed another year offer and more

The For Loan Debt Crisis
Many economist view this current student loan issue in the same realm as the home mortgage crisis.
In 2008 The mortgage crisis put the American economy into the biggest recession it had seen since
the "Great Depression". An economist by the name of John T. Harvey is highly regarded for his
work in economics. Harvey attended the University of Tennessee, where he received a doctorates
degree in economics and political science, and has now taken on the role as a Professor of
Economics at Texas Christian University. Harvey wrote an article published on Forbes.com titled
"Student Loan Debt Crisis", where he breaks down the main intricacies of student loan debt. Harvey
starts by discussing the comparison between student loan debt and the ... Show more content on
Helpwriting.net ...
This means ninety percent are making their payments on time. Harvey also points to how the
government backs most of the loans, he states, "the government supports 95% of student loans,
meaning that the private sector is protected from direct economic fallout in a way that was not true
in the subprime crisis. Last and perhaps most important, we don't have financial institutions
enthusiastically creating assets derived from pools of student loans (especially the riskiest ones) that
are then traded on the stock market, thus making their value vulnerable to sudden and violent
changes of opinion." The final statement Harvey inquired about is exactly why this student loan debt
crisis should be put into perspective. The mortgage crisis had so many cracks in its foundation that it
was simply bound to collapse. Banks were making risky loans, but did not care since they knew they
were just going to resell the loan to another bank. The loans were then pooled together and received
securitization through an intermediary institution. The intermediary would then organize these loans
into tranches and aach tranche would then undergo a shaky ratings process where it would receive a
rating based on the risk. Where all of this went wrong is these intermediary institutions would then
pool all the low rated tranches and get them re–assesed where the pools now received a higher rating
due to it being a watered down pool of loans. These loans turned into a hot potato where the

The Problem Of The European Debt Crisis
Introduction
The European debt crisis is a culmination of many factors and long gone are the days of economies
not being tied to each other. With modern globalization, major financial crisis's can lead to
worldwide turmoil and economic downturn. What happens in other markets, will not only affect
their market, but markets all over the world. Because of this, the European debt crisis is not just
Europe's problem, but rather everybody's problem. The rout causes of the European Debt Crisis are
known. However, restoring the economies that were hardest hit is no easy task. Economist all over
the world have ideas and plans that they think will work. Only time will tell what works, and the
longer it takes, the harder it is on the citizens of the countries affected most.
Description
As mentioned earlier, globalization has led to all markets being tied together. With the United States
being one of the biggest economies in the world, and the financial crisis it was going through in
2009, it started a ripple effect throughout Europe. With Americans defaulting on their mortgages,
banks in Europe who had invested in the United States housing by buying bonds, were now losing
money. The effect that this had on European countries was devastating. The money that they
borrowed, they lost and when it came time to pay back, they simply couldn't. The ripple effect that
started in the United States, was now starting to destroy the economy in European countries starting
the very beginning of

Student Debt Crisis
1.0 Introduction
A student loan is designed to help students pay for university tuition, books, and living expenses. It
may differ from other types of loans in that the interest rate may be substantially lower and the
repayment schedule may be deferred while the student is still in education. It also differs in many
countries in the strict laws regulating renegotiating and bankruptcy.
There are two types of student loan that can be applied which are federal student loan and private
student loan. Basically, students are more prefer to make a loan in federal student loan because the
fixed interest rate wouldn't affect the payment that they have to pay even the interest rate rise. In
addition, government also provide free insurance ... Show more content on Helpwriting.net ...
4.0 Impacts 5.5 Burden their family for decades
Currently, federal student loans are automatically cancelled when the borrower killed or disabled but
private student loans become the responsibilities of the students' families. So that, the student that
borrow private loan which have high interest rate just give a burden for their family to settle the
debt. Since the family have responsible to pay the debt together with the interest rate, they will have
no saving in future.
5.6 Could slow economic recovery in housing market
The extensive amount of national debt held by college graduates in federal student loans debt is
affecting their ability to qualify for a home loan and a delay in housing market growth. Students
coming out of college today have more federal student loan debt than ever and they're coming into
an economy that is under performing. The $1 trillion in student loan debt is starting to slow the
economy just as the housing bubble created a mortgage debt problem. For couples looking to buy a
house, it is more difficult to qualify for a home mortgage when even one of the buyers has student
debt, and even harder if both buyers have student debt.
5.7 Decrease the liquidity of bank
Banks may also face difficulty in providing liquidity during a debt crisis if

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