Greece debt problem may affect global economy
Thursday, June 16th, 2011The financial system of the global financial system may be survived due to the sovereign defaults are seen in the past. There has been a good situation as the financial institution and have provided with opportunities to reduce the holdings in Greek debt. The exposure of Greece and other economies in Europe crisis includes European central bank and International Monetary fund. The restructuring the taxpayer will pay and the lending has been regulates in situation and markets are facing risk due to the crisis.
According to the recent fears the whole world may withness a similar situation like the Lehman as the prime money falls and seeing debts. Some banks like Deutche bank and Barclay’s have not witnessed the Greek exposure which has been dangerous and have been shared by other banks. Many of the market fund portfolios have helped the default to get awake and created panicky among the investors and take off their money. The potential in the money market have impacted and there has been a financial problems around the worlds coming out from Europe.
If Greece fails the situation many American Banks and other insurance banks have to come forward and help to solve the crisis in Greece. Showing the data of Bank the international settlements have the points shown out of the Greek default about the looses and credit picked up. Some of the ratings agencies have even indicated the banks are forced to take part in the re profiling and constitute to the debt exchange. The whole question raises as investors are waiting Lehman like situation raise and preparing themselves and the effect which will be caused in future.