Debt crisis
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The main problem of the problem in Greece seems to lie with the huge amount of unsecured loans it racked up.
I wonder. When an individual or company borrows large amount of money, they are often expected to provide something as a security. e.g. mortgaging their property etc.
How come when Greece borrowed so much money, no one asked them to provide something as collateral?
I think that it is the responsibility of every country/government to be financially prudent and to spend within their means.
So, why not require countries to place their land as collateral when they want to borrow money?
E.g. I want to borrow X billion dollars. I place X hectares of land valued at X billion dollars as collateral. In event that I default, the creditor will have full sovereignty over that piece of land.
Independence is only for those who are responsible and can afford it. This would help to remove irresponsible countries, and place them under the rule of more responsible ones. And furthermore with collateral involved, we will not see catastrophies like the Greek crisis where billions of dollars will vaporize if the government decided to default.
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the rich and the powerful set the rules. the poor and weak follow them.
do you think the rich and powerful will impose such a rule on each other?
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Originally posted by dragg:
the rich and the powerful set the rules. the poor and weak follow them.
do you think the rich and powerful will impose such a rule on each other?
*1 to above. You should be to Greece to see why they would do it.And same with Americans.
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Originally posted by Bio-Hawk:
*1 to above. You should be to Greece to see why they would do it.And same with Americans.
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all shares are down. looks like the european debt crisis is serious unless europe get its act together.