From Greece to Grads: How Debt Impacts the World in Which We Live
Taking a look at the international headlines is not something on the forefront of the minds of many Americans on a daily basis, but a glance every now and then may not be a bad idea.
For example, look no further than the situation in Greece. For decades, Greece had served as an economic pillar, not only in Europe, but throughout the entire world, due to its rapid economic growth, particularly in the period following World War II. But that growth led to rampant corruption, a situation that was magnified exponentially in conjunction with the Global Financial Crisis of 2007 and 2008 (a period from which the United States continues to dig out). The Greek economy went into a staggering freefall, and the primary means of stopping the decline was to borrow, borrow, and borrow.some more.
It’s a situation that has stunned economists throughout the globe, and it may all come to a head on Tuesday. On June 30, a deadline that has already been pushed back twice, Greece must pay up on its debt to the International Monetary Fund to the tune of 1.5 billion pounds ($1.7 billion dollars). The beleaguered nation faces a myriad of options, none of them pleasant, from working out 11th hour deals with its creditors to withdrawing from the European Union (a move dubbed by many as a “Grexit”), and forsaking the Union’s stabilizing influence in order to push the ‘reset’ button, and build the economy up from its massive hole on its own.
-When you consider the impact that debt can have on the future of an entire country, it adds some perspective to the debts that individuals and families face throughout the world. From credit card debt to mortgage debt to college-based student loan debt, and many line items in between, we are living in an age of a higher mountain of debt than we have ever seen before.
On this Sunday’s edition of “The Raja Show”, Raja, with the help of Michael Casey, Senior Columnist for the Wall Street Journal, and an expert on global economics, examines the nature of debt in our current economic society. They’lll take an in-depth look at the situation in Greece,and discuss the lessons that you can take away from this situation to manage your own financial situation (and there ARE lessons). While you’re probably not facing a 10-figure level of debt in your own life, the odds are that you’re feeling some kind of pinch, and it’s a pinch that could be causing you damaging stress that can be relieved if you put a simple plan in place.