In fundamental terms, here's what is happening in Europe, and why we have to be very thinking about the problem. Relevant this to family, let us state that my boy Greg (A holiday in greece) has spent all his savings. Younger crowd lost his capability to earn an earnings, but is constantly on the spend as though he's working.
Greg asks me for a financial loan to assist him pay his financial obligations, and promises to scale back on his investing. I can not develop the money Greg needs, and so i use my siblings and siblings (the Eu) to pool our money together to bail out Greg. Greg offers to pay all of us back after he will get another job, but assures us that he will stop investing.
Later, while looking at Greg's finances we discover he's still investing just like a drunken sailor man. Obviously Greg has not compensated anybody back the very first dollar yet. Greg states he's sorry that he isn't had the opportunity to scale back on his investing. He describes he continues to have contracts together with his tailor, personal chef, and the staff of home gardeners and maintenance individuals to outlay cash for an additional half a century. He can't stop having to pay them because they'll burn his house lower from anger if he tries.
Due to Greg's situation we accept extend time limit for him to pay for us back. As we are telling Greg that we'll extend his loan, and help remind him he still must cut somewhere, he states oh incidentally. I didn't remember to let you know about more expenses that should also be compensated. Are you able to loan me more money and allow me to repay it using the original loan? My buddy Gary (comparable to Germany within the E.U.) is furious.
I described to Gary when we do not give Greg what he needs, we'll all lose everything we borrowed him. We must provide him more as we ever would like to get our money-back. All of us take a look at our assets and realize we do not have sufficient to assist Greg this time around. Together we choose to call our Father (just like the Worldwide Financial Fund) to ascertain if he is able to allow us to bail out Greg and help him turn the corner. Our Father compares the situation and states he does not have the money either, and can speak with his neighbor Amy (America) and find out if she's prepared to help.
Right now my siblings and siblings need to float more compact financial loans to each other to remain afloat because we borrowed our money to Greg. He's still going much deeper within the hole every single day without any change around the corner.
My Father returns and states that he's guaranteed financing from his wealthy neighbor, Amy to assist all of us out, but stresses the significance of reducing Greg's costly lifestyle. Amy comes with an open credit line at her bank (China) that enables her to gain access to immeasureable cash with her family property as collateral. She recognizes that if she fails to repay her loan she manages to lose the household farm, but really wants to appear wealthy so she borrows the cash from her bank to offer to Father.
Greg once more states thanks and continues his merry way, guaranteeing many of us that he's making the required changes. My Father informs his neighbor that her cash is safe while he has belief in the grand son.
While we are all attempting to help Greg, my sister Iris (Ireland) finds herself inside a tight place and asks to gain access to money from many of us. Everybody wants to assist Iris, but we not have the money because we borrowed all ours to Greg. We once more use our Father and request him to return to his neighbor who had been so useful with Greg. While he is sort of taken off the daily activities of his grand son, he thinks that things are going based on plan and would go to his neighbor.
Amy, that has complete confidence during my Father, freely financial loans her lent money help Iris. Unlike Greg, Iris makes difficult investing cuts, and starts turning her finances around. She is not capable of paying her loan back yet, but is making apparent strides within the right direction. So after review, all of us accept extend Iris' loan.
Now our siblings Peter (Portugal) and Steven (The country) start having financial hardships simply because they aren't making the cash they have to sustain their lifestyle either. They tell us they may eventually require a bailout too. Now my buddy Gary who's spending so much time to maintain his household is really inflammed while he can also be barely scraping by because of the cash he's provided to everybody else.