Reply #31: The Greek problem could have been contained, if it was just them

[muriel_volestrangler]

In 2007, the year before the shit hit the fan:
Ireland had a government surplus of 0.1% of GDP
Spain had a surplus of 1.9%
Italy a deficit of 1.5%
Portugal a deficit of 2.6%
and the UK a deficit of 2.8%. Greece's deficit was 5.1% .

Source: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22042010-BP/EN/2-22042010-BP-EN.PDF

The Greeks were spending more than they should have; but the UK was spending more than any of the other Eurozone countries that are now worries. The problem is the worldwide recession, which was caused by the lax banking regulations - and London was the worst of the major financial centres (the AIG disaster was centred on London, because of the British lack of regulation). There was a worldwide bubble, set up by reckless banks - and countries have scrambled (too much in my opinion) to keep the irresponsible banks afloat, and that has increased the debts of the governments.