What is the cause of the European financial crisis?

What is the cause of the European financial crisis?
by

1 Answer

Answer :

My impression is they have been living beyond their means for a long time and the governments have been spending more than they take in and borrowing the difference. The people that have been lending them money are now getting a little reluctant to continue doing so and interest rates to do it are going up. And the citizens don’t want to make the sacrifices to ease the situation. So they’re stuck. I think the last Italian debt had a high interest rate on it and few takers. Same with Greece and Spain I think. If they can’t borrow money they can’t roll over the debt that’s coming due and they may default on some of it. If they default the game is up.
by

Related questions

Is the cause of the 2008 financial crisis, something about it not being illegal?

Description : Is the cause of the 2008 financial crisis, something about it not being illegal?

Last Answer : There were a lot of illegal acts that contributed to the crisis- securities fraud and violations of banking regulations. But there was a general disregard for prosecuting anyone. The Department of Justice did not file criminal charges against anyone.

What is the root cause for the American financial crisis, the Gov, or the Citizen?

Description : What is the root cause for the American financial crisis, the Gov, or the Citizen?

Last Answer : The Government supported even encouraged predatory lending practices that allowed anyone with a beating heart to get a housing loan. Once the loan defaults started popping and vacant homes started piling ... borrowed money that they even in good times could barely afford. What were they thinking??

Do you know anything about the debt crisis in the European Union?‎?

Description : Do you know anything about the debt crisis in the European Union?‎?

Last Answer : As long as there are people who are willing to voluntarily or by force be willing to pay somebody else's debts, there is no crisis. The problem occurs when people do not want to be forced ... . Debt does not disappear. It merely gets transferred to somebody else until they refuse to pay it.

If the US economy kicked off the global financial crisis of 2007-8, why are so many people denying the possibility of China sending global markets into another crisis today?

Description : If the US economy kicked off the global financial crisis of 2007-8, why are so many people denying the possibility of China sending global markets into another crisis today?

Last Answer : answer:China does things that would be totally illegal here to manipulate their stock market (like the government pumping in 20 billion a week to inflate prices). So I wouldn't really chalk the last week ... correction. That being said I have lost a lot this last week, but I am not concerned.

Can you recommend (based on your personal reading experience) one or two books on the the financial crisis of 2007-2009?

Description : Can you recommend (based on your personal reading experience) one or two books on the the financial crisis of 2007-2009?

Last Answer : I don’t have any books for you. I did read a really fascinating article from Wired: Recipe for Disaster: The Formula That Killed Wall Street.

What have you done to cut back during this financial crisis?

Description : What have you done to cut back during this financial crisis?

Last Answer : I’m independently wealthy, so there hasn’t been any need for me to “cut back” on anything, at this time. If I need any additional money for anything, I’ll just rob another liquor store at gunpoint.

Is it possible to find a budget accommodation in San Diego during this financial crisis?

Description : Is it possible to find a budget accommodation in San Diego during this financial crisis?

Last Answer : You will pleasantly surprised. Because of the downturn in visitors, accomodation prices have actually gone down. Here’s where I always stay: http://www.beachcottages.com/

What personal worries do you have about the financial crisis, and where do you go for answers?

Description : What personal worries do you have about the financial crisis, and where do you go for answers?

Last Answer : I myself don't agree with the buyout. I personally think that the business should run their course and if they have to go under , so-be-it. unfortunately, from what i've gathered from several ... and start gaining again. In my opinion, the bailout will just make matters worse at a later date.

America's current financial crisis.. what to make of it?

Description : America's current financial crisis.. what to make of it?

Last Answer : What to make of it?? MONEY! Buy low, sell high!

How Germany came out of this financial crisis? -History 9th

Description : How Germany came out of this financial crisis? -History 9th

Last Answer : The Americans bailed Germany out of the crisis by introducing Dawes Plan', which reworked the terms of reparation to ease the financial burden on Germany.Germany came out of its financial crises ... Plan.The plan favorably solved the problem of World War I reparations that Germany ought to pay.

On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Description : On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Last Answer : The answer is 'Not even once'

On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Description : On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Last Answer : answer:

On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Description : On the basis of financial crisis howmany times has emergency been declared by the President of India? -General Knowledge

Last Answer : answer:

What contributed to france’s financial crisis?

Description : What contributed to france’s financial crisis?

Last Answer : Bad harvests in the 1770's

How will the US financial crisis affect the making of new Pontiac models?

Description : How will the US financial crisis affect the making of new Pontiac models?

Last Answer : There was a scare early on in 2009 that GM would eliminate the Pontiac brand from the assembly line but as far as now Pontiac is still up and running.

Avoid A Financial Crisis By Avoiding Bed Bugs?

Description : Avoid A Financial Crisis By Avoiding Bed Bugs?

Last Answer : Traveling is something that nearly everyone must do at some point. For frequent travelers, there is one major threat that could actually bring a budget to crumbles - bed bugs. These tiny round ... much more serious threat than people realize. Their bite is painful and causes small itchy spots; ad

A law can be enacted, or executive order issued, even contrary to Article 19, during proclamation of emergency - (1) caused by war or external aggression (2) caused by internal armed rebellion (3) caused by constitutional breakdown (4) caused by financial crisis

Description : A law can be enacted, or executive order issued, even contrary to Article 19, during proclamation of emergency - (1) caused by war or external aggression (2) caused by internal armed rebellion (3) caused by constitutional breakdown (4) caused by financial crisis

Last Answer : (1) caused by war or external aggression Explanation: Article 358 protects both legislative and executive action taken after the proclamation of emergency. National emergency is caused by war, external ... to the original Constitution. It modifies the federal system of government to a unitary one.

On the basis of financial crisis howmany times has emergency been declared by the President of India?

Description : On the basis of financial crisis howmany times has emergency been declared by the President of India?

Last Answer : Not even once

On the basis of financial crisis howmany times has emergency been declared by the President of India?

Description : On the basis of financial crisis howmany times has emergency been declared by the President of India?

Last Answer : Not even once

The International Monetary Fund is important because: A. It has sufficient financial resources to deal with a major global financial crisis. B. It has sufficient financial resources to help individual countries facing balance of payments problems. C. Emerging economies can exercise significant influence on it. D. It fixes exchange rates.

Description : The International Monetary Fund is important because: A. It has sufficient financial resources to deal with a major global financial crisis. B. It has sufficient financial resources to help individual ... C. Emerging economies can exercise significant influence on it. D. It fixes exchange rates.

Last Answer : It has sufficient financial resources to help individual countries facing balance of payments problems

When did the USA last face a Supply Side crisis and how did we solve it?

Description : When did the USA last face a Supply Side crisis and how did we solve it?

Last Answer : answer: Supply side economics is a sham. It's a discredited and disproved idea which says that cutting taxes for the wealthy and removing regulations and reducing government spending is always the ... well, everything. The time to face facts and reject their ideology is several decades past due.

Who do you blame for the economic crisis?

Description : Who do you blame for the economic crisis?

Last Answer : world leaders and greed

Is there a term for when a normal every day item suddenly takes on an highly-inflated worth in a 'crisis'?

Description : Is there a term for when a normal every day item suddenly takes on an highly-inflated worth in a 'crisis'?

Last Answer : I did some searching and found some terms that might be helpful, but I'm not sure if they are the silver bullet you are looking for: Perfect Price Discrimination Price Rationing Hyper-Demand - ... some ideas for one: Crisis Price, Pandemic Demand, Temporary Demand Shift, Crisis Demand, Scarce Price

Which factor is not responsible for Global ecological crisis? (a) Depletion of resources for satisfying the greed of few individuals. (b) Accumulation of resources in few hands. (c) Sustainable economic development. (d) Indiscriminate exploitation of resources.

Description : Which factor is not responsible for Global ecological crisis? (a) Depletion of resources for satisfying the greed of few individuals. (b) Accumulation of resources in few hands. (c) Sustainable economic development. (d) Indiscriminate exploitation of resources.

Last Answer : (c) Sustainable economic development.

Main purpose of buffer stock is : (a) to save food grains from pest attack (b) to stop price fluctuations (c) to meet the crisis of low production (d) both (b) and (c)

Description : Main purpose of buffer stock is : (a) to save food grains from pest attack (b) to stop price fluctuations (c) to meet the crisis of low production (d) both (b) and (c)

Last Answer : (d) both (b) and (c)

4. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would? a. Inflation makes everyone poorer b. Inflation reduces the value of consumer debt c. Inflation increases business investment spending d. Inflation decreases savings in financial form

Description : 4. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would? a. Inflation makes everyone poorer b. Inflation reduces the value of consumer debt c. Inflation increases business investment spending d. Inflation decreases savings in financial form

Last Answer : d. Inflation decreases savings in financial form

What ideological crisis did Rome's early expansion cause?

Description : What ideological crisis did Rome's early expansion cause?

Last Answer : Rome's expansion during the period of the Roman Republic led to a socio-political crisis, rather than an ideological one. Rome developed an ideology which saw her as being predestined to conquer, and no ... to violence. It also played a role in the civil wars which brought the Roman Republic down.

Which of the following terms is given to hypertension in which the blood pressure, which is controlled with therapy, becomes uncontrolled (abnormally high) with the discontinuation of therapy? a) Rebound Rebound hypertension may precipitate a hypertensive crisis. b) Essential Essential or primary hypertension denotes high blood pressure from an unidentified source. c) Primary Essential or primary hypertension denotes high blood pressure from an unidentified source. d) Secondary Secondary hypertension denotes high blood pressure from an identified cause, such as renal disease.

Description : Which of the following terms is given to hypertension in which the blood pressure, which is controlled with therapy, becomes uncontrolled (abnormally high) with the discontinuation of therapy? ... Secondary hypertension denotes high blood pressure from an identified cause, such as renal disease.

Last Answer : a) Rebound Rebound hypertension may precipitate a hypertensive crisis.

How did the political boundaries drawn by European colonial powers cause problem for many African nations after they gained independence?

Description : How did the political boundaries drawn by European colonial powers cause problem for many African nations after they gained independence?

Last Answer : It caused problems for certain African tribal regions due tocolonial boundaries drawn over established borders. On top oftribal issues, people within thoses groups either accepted thecolonial powers or revolted.

How did the political boundaries drawn by European colonial powers cause problem for many African nations after they gained independence?

Description : How did the political boundaries drawn by European colonial powers cause problem for many African nations after they gained independence?

Last Answer : It caused problems for certain African tribal regions due tocolonial boundaries drawn over established borders. On top oftribal issues, people within thoses groups either accepted thecolonial powers or revolted.

Globalisation means - (1) Integration of economy (2) Integration of financial market (3) Integration of the domestic economy with the world economy (4) Integration of the various sectors of economy

Description : Globalisation means - (1) Integration of economy (2) Integration of financial market (3) Integration of the domestic economy with the world economy (4) Integration of the various sectors of economy

Last Answer : (3) Integration of the domestic economy with the world economy Explanation: Globalization is the process of international integration arising from the interchange of world views, products, ... globalization refers to processes that promote world-wide exchanges of national and cultural resources.

National Income include : (1) Financial help to earthquake victims (2) Pocket money of a child (3) Winning of a lottery prize (4) Construction of a new house

Description : National Income include : (1) Financial help to earthquake victims (2) Pocket money of a child (3) Winning of a lottery prize (4) Construction of a new house

Last Answer : (4) Construction of a new house Explanation: National income is the total value a country's final output of all new goods and services produced in one year. So construction of a new ... . So private sector transfers including charitable donations and prizes to lottery winners are excluded from it.

National Social Assistance Programme is aimed at providing - (1) financial support to Scheduled Castes and Scheduled Tribes (2) old age pension to very poor (3) insurance for the poor (4) All of the above

Description : National Social Assistance Programme is aimed at providing - (1) financial support to Scheduled Castes and Scheduled Tribes (2) old age pension to very poor (3) insurance for the poor (4) All of the above

Last Answer : (2) old age pension to very poor Explanation: The National Social Assistance Scheme (NSAS) or National Social Assistance Programme (NSAP) is a flagship welfare programme of the Government of India ... and in other cases of undeserved want within the limit of its economic capacity and development.

The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Last Answer : (3) Reserve Bank of India Explanation: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

)The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - (1) codification of tax laws (2) the entire structure of tax laws including the question of imposition of bank tax (3) the concerns of the foreign investors in India with regard to taxation matters (4) aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system

Description : )The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - (1) codification of tax laws (2) the entire structure of tax ... generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system

Last Answer : (4) aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system Explanation: The Central Board of Direct Taxes (CBDT) ... steps to prevent generation of illicit funds through transactions in property, bullion and equity market.

Production function expresses - (1) technological relationship between physical inputs and output (2) financial relationship between physical inputs and output (3) relationship between finance and technology (4) relationship between factors of production

Description : Production function expresses - (1) technological relationship between physical inputs and output (2) financial relationship between physical inputs and output (3) relationship between finance and technology (4) relationship between factors of production

Last Answer : (1) technological relationship between physical inputs and output Explanation: Production involves transformation of inputs into outputs. The output is a function of input. The functional relationship between ... be produced from any given quantities of various inputs during a given period of time.

A financial instrument is called a 'primary security' if ii represents the liability of : (1) some ultimate borrower (2) the Government of India (3) a primary cooperative bank (4) a commercial bank

Description : A financial instrument is called a 'primary security' if ii represents the liability of : (1) some ultimate borrower (2) the Government of India (3) a primary cooperative bank (4) a commercial bank

Last Answer : (1) some ultimate borrower Explanation: Instruments (certificates) issued by the ultimate borrower are called primary securities. Instruments issued by intermediaries on behalf of the ultimate borrower are ... the business / project of the borrower for which the credit facility has been extended.

The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.

A successful inclusive growth strategy includes a. Equal opportunitiesb. Financial inclusionc. equityd. all the above

Description : A successful inclusive growth strategy includes a. Equal opportunities b. Financial inclusion c. equity d. all the above

Last Answer : : d. all the above Inclusive growth strategy involves all the sections of the society.

1) Which among the following could be said to be an 'Open Economy'?a) A nation that follows the doctrine of Free-market and Laissez-faire economics b) A nation that trades with other nations in goods and services and financial assets c) An economy that operates without government intervention d) None of the above

Description : 1) Which among the following could be said to be an 'Open Economy'? a) A nation that follows the doctrine of Free-market and Laissez-faire economics b) A nation that trades with other ... services and financial assets c) An economy that operates without government intervention d) None of the above

Last Answer : : b) A nation that trades with other nations in goods and services and financial assets

Which of the following is not an export (a) sales of domestic cars abroad (b) purchase of foreign components © students from abroad studying in your country (d) sales of financial services.

Description : Which of the following is not an export (a) sales of domestic cars abroad (b) purchase of foreign components © students from abroad studying in your country (d) sales of financial services.

Last Answer : (b) purchase of foreign components

In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.

Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.

Last Answer : (b) Aggregate demand.

National Social Assistance Programme is aimed at providing (1) financial support to Scheduled Castes and Scheduled Tribes (2) old age pension to very poor (3) insurance for the poor (4) All of the above

Description : National Social Assistance Programme is aimed at providing (1) financial support to Scheduled Castes and Scheduled Tribes (2) old age pension to very poor (3) insurance for the poor (4) All of the above

Last Answer : old age pension to very poor

The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India 

Last Answer :  Reserve Bank of India

Globalisation means (1) Integration of economy (2) Integration of financial market (3) Integration of the domestic economy with the world economy (4) Integration of the various sectors of economy

Description : Globalisation means (1) Integration of economy (2) Integration of financial market (3) Integration of the domestic economy with the world economy (4) Integration of the various sectors of economy

Last Answer : Integration of the domestic economy with the world economy

The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : sale of stocks and bonds to the public

The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into – (1) codification of tax laws (2) the entire structure of tax laws including the question of imposition of bank tax (3) the concerns of the foreign investors in India with regard to taxation matters (4) aspects of generation of black money, its transfer abroad and bringing back such money into India’s legitimate financial system

Description : The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - (1) codification of tax laws (2) the entire structure of tax ... generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system

Last Answer : aspects of generation of black money, its transfer abroad and bringing back such money into India’s legitimate financial system

A financial instrument is called a ‘primary security’ if it represents the liability of : (1) some ultimate borrower (2) the Government of India (3) a primary cooperative bank (4) a commercial bank

Description : A financial instrument is called a ‘primary security’ if it represents the liability of : (1) some ultimate borrower (2) the Government of India (3) a primary cooperative bank (4) a commercial bank

Last Answer : some ultimate borrower

National Income include : (1) Financial help to earthquake victims (2) Pocket money of a child (3) Winning of a lottery prize (4) Construction of a new house

Description : National Income include : (1) Financial help to earthquake victims (2) Pocket money of a child (3) Winning of a lottery prize (4) Construction of a new house 

Last Answer :  Construction of a new house

Production function expresses (1) technological relationship between physical inputs and output (2) financial relationship between physical inputs and output (3) relationship between finance and technology (4) relationship between factors of production

Description : Production function expresses (1) technological relationship between physical inputs and output (2) financial relationship between physical inputs and output (3) relationship between finance and technology (4) relationship between factors of production

Last Answer : technological relationship between physical inputs and output