The New Question: Grexit or Rebound? - Sophia Davison

     Since Greece's conversion to the Euro in 2000/2001, causing a catastrophic difference in their standing with other European countries, the financial difficulties and near collapse of the economy have created worry, poverty, and serious instability within the country along with causing new concern throughout the rest of Europe. As Yahoo! News and many other news informers say, the question of whether new loans dispersed to Greece will end up fixing the problem or not remains questionable. Supposedly a plan offered by European financial leaders throughout various countries suggests major debt-reducing actions, as well as rescue loans financed by leaders of different nations. "Greece's international creditors are holding up payment of the next batch of those loans until a review of the reforms is completed in the coming days. Without the money, Greece faces bankruptcy in mid-October, potentially sending shock waves through the financial sector in Europe and abroad," says Yahoo!. Although leaders of the Greek government and financial advisers say they are confident in these plans and that great effort has already been taken in cutting down spending, the reality of the matter is that Greece (through a mixture of some corrupt government actions with hidden motives and secret loan history programs, some of which were provided and backed by American banking corporations, as well as changing to the Euro and the wealthy manipulating what money was being spent and not being returned to loaners) has essentially two productive options for maintaining and stabilizing the structure of state. As certain economic analysts say: Greece can exit the Euro; waiting out the hardships in order to gain stabilization by allowing the lower class to take the hit through an insane hyperinflation and large amount of people homeless, jobless, and businesses out of commission, also allowing the 'big-whigs' to come in and control even more of the money and basically create some sort of social breakdown. Or Greece can remain with the Euro, which would set other national banks with Greek bonds to take a hit similar to a contagion effect; yet this also poses problems because the constant cutting down on government funding (which provides for rebuilding of roads, schools, housing, construction, and essentially allows for the work force to exist) in an attempt to repay debts on the Euro would collapse any kind of societal structure, as well. Ultimately, some say it would be better for Greece to exit the Euro and return to the Drachma, but this stimulates a complete start-over for the country, and there would most likely produce more poverty than there exists now.
      The effects on Greece that I hear of through news and media, as well as the condition and state that I've seen myself lead me to think of the Great Depression's effects on America. Although the situation does not have to do with a stock market crash, the level of worry and work that lower class inhabitants live with in Greece is astounding and heartbreaking. Some of my friends in Greece would relay to me the hardship that living is there at times. Due to some of these already-implemented cut-backs by the government, the taxes in some locations are so high that people can barely live off of what they make, and most have grown up working for family-run businesses that make just enough to live off of, even with growing their own food. So this leaves everyone with barely enough money to even run the businesses themselves, leaving no finances for taking care of rent, mortgage, other food items, or a family. Although not all of Greece is hit as hard as other parts, and not everyone is in such dire conditions of survival, the residual effect of the cutbacks will end up affecting every person, and any major decisions like the ones being discussed between European leaders have a huge impact on the future of all Greek inhabitants. The state that the government, finances, and quality of life for everyone there are in right now leaves me grateful for a more stable financial system currently within the U.S., yet mostly with a sense of sadness and hope for my friends in Greece and all of the residents throughout the country that things will get better.

http://news.yahoo.com/greece-loans-time-avoid-default-

 And for more information on why Greece has debt, go to:
https://answers.yahoo.com/question/index;_ylt=A86.J3WK_OtUii4Ar3gnnIlQ;_yxMQR