Greece Crises

The Crises: Almost all the things in Greece were going fine. Greece was prospering in all the dimensions. Along with that the natural assets of Greece were playing a role against it. The climate of Greece was very good as compared to all other European nations. The Greece is surrounded by Mediterranean Sea from one side and Aegean Sea from other side. As a result the entire Greece is having a maritime climate. Almost everyone in Europe wants to live in Greece. As a result the housing sector in Greece started booming. The Greece banks started giving loans to every person trying to buy a home. So a large number of subprime loans were given in Greece.

Now this was the situation on one side and on the other side the Greece government was spending a lot on various activities. The main culprit in this case was the Greece Olympics of 2004. The Greece government had taken a huge amount of loan from the various countries. These loans are called the sovereign debts. So the trade deficit of Greece was also increasing. The Greece government at that time was trying to hide the fiscal deficit. So they were showing them to be around 2% of the GDP although the actual was around 12.5%. So when the next government came it just opened the fact in front of the public. As a result of this the bubble of growth in the housing sector burst and the people started leaving Greece.

Now the value of houses started plummeting. The Greece was now surrounded by the subprime loans from one side and sovereign debts on the other side. So this was the start of the Greece crises. This crisis became wide spread as it was an intermingled sort of crises. All the major European countries were attached to each other in one way or other. Crises on Greece means a heavy time for all the major European nations. So this Crisis of sovereign debt and subprime loans covered the entire Europe.