It’s supposedly been two years since we left the last recession 2008, though many of us never noticed the recovery. But now chances are likely that we are entering another one. This time instead of being sparked by Lehmann Brothers, it will be sparked by the Euro Zone bond crisis — in other words the Greek debt woes.
A story that was supposedly boring and peripheral omly a few months ago, has turned into epic-making news.No one would have imagined last spring that the Greek debt crisis would mushroom into the next recession.
But Greece symbolizes what’s wrong with everybody else? The western industrialized democracies have too high a rate of public spending and too high a rate of private debt. More debt needs to be shed. If we don’t figure out a way to shed it effectively, it will get shed the hard way — meaning a downturn.