The crisis highly resembles that of the United States. A housing bubble and high unemployment are tearing through every sector and bringing all of the country’s consumers down. As a result of ongoing talks, Spanish officials have said that they will put in place a recovery plan that is “very,very austere”. No more hours spent on nude beaches, sangria for breakfast, or chowing on the finest meats. (Take those stereotypes as jokes)
There are serious implications here. Spain’s economy is such a large part of the European Union that many people have said that the country is “too big to fail” (sound familiar, Americans?). Since all of Europe is tied together by the Euro, a bankrupt Spain means a screwed European Union. A screwed European Union means a global economy close to being pushed over the edge. That means terrible things for the United States…..
Japan went though a similar issue in the 1990’s. That decade is known as “The Lost Decade” in Japanese history, that speaks for itself…
What should be done about Spain? Should they be bailed out or should they be left to fail? Looking back , was the Euro a bad idea?