Podcast: Play in new window | Download
Broadcast – Greek Debt Crisis
Did you ever run up so much credit card debt that you could only pay off the minimum each month? Did you borrow more money just to make the minimum payment? And finally you couldn’t even pay that?
That’s what’s happened to Greece. It issued about $340 billion in bonds to pay for the Summer Olympics and other goodies. The Greek government reached the point it couldn’t make its payments. Greek leaders have now been forced to cut back by reducing pensions to retirees, raising the retirement age and phasing out bonuses.
Here’s something you didn’t know. Greece is now running a surplus! The U.S., on the other hand, has a deficit of $474 billion! And just like the guy with the credit card, our country is borrowing money just to make its minimum payments. Soon our “Greek” moment will be upon us.