Since the beginning of May was indeed a very heavy month for the European economy. An increasingly heavy pressure after the EU more visible and also the IMF will ensure funding says for a trillion dollars to help the Greek economy is currently experiencing a crisis due to disputes in the financial sector after the rampant cases of bad credit.
Certainty post-launch policy, the number of questions re-emerge. Where does the amount of funds available? This question has indeed become a paradox of the emergence of positive sentiment after the policy is expressed by the European Union and the IMF. A number of concerns began to emerge on the financial condition of European countries which ascertained will be sucked to the use of funds that much.
The threat of any further crisis occurs. Possible expansion of the crisis to all member countries of the European Union more and give a bad dream, let alone the recovery process due to the global economic crisis that occurred in two years ago is still not perfect. Europe’s financial reserves are also increasingly being drained so that certainly would make the European Central Bank had to rack my brain to obtain fresh funds.
Then, where is it obtained? customers is one of the most important component of policies that increase the savings rate to be one “weapon” that can absorb fresh funds from its customers. Yet it seemed it would be constrained by the flight of investment capital into commodities like gold sector that is currently getting ready to record the newest.
Many people judge the condition that occurred in Europe today is similar to what happened in the case of Lehman Brothers in the U.S. two years ago. The amount of loss and deficit one of the largest banks create the conditions for bankruptcy. The high cases of bad loans in the property sector, making the bank’s difficulties to overcome adversity. Even the U.S. government aid was not enough to overcome its financial crisis occurred.
By looking at these conditions, then maybe what happened to Lehman Brothers will also occur in Europe but remain distinct in terms of scale. But the indications and the case between two points is quite similar. Now, the European Union and the IMF should pay attention to the impacts that will occur after the disbursement of funds amounting to one trillion dollars to the Greeks. Not to mention there besides Greece Portugal and Spain which gradually will also experience a crisis like that experienced by the Greeks, if not treated seriously.
