Greek Debt Dramas Before the Global Financial Crisis (GFC) in 2008, the Greek had positive economic growth and it was considered high among countries in eurozone. Average economic growth reached almost four per cent between 1999 and 2007. Then the crisis hit in 2007 where housing bubble burst and made the subprime mortgage market in the United State collapsed. The crisis in the U.S. created a chain reaction which causing global banking crisis and credit crunch that lasts through 2009. The crisis made Lehman Brothers, big financial company, collapsed and the government in the United States and Europe prepared to bail out their banks. Greece failed to pay their huge debt since borrowing costs rose and financing dried up. The ο¬nancial crisis affected the Greek economy by reducing ο¬nancial liquidity and business activity. Greece had been fortunate enough to face the crisis with the euro instead of its national currency, if they were using their national currency the crisis wo...
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