Brief Introduction To European Sovereign Debt Crisis

Fears of a European sovereign debt crisis began in 2009 when many of the countries

that relied on Eurozone investors began seeing an inability to sustain their debts. Banking industries in countries such as Greece, Portugal and Spain struggled to make ends meet because of a growing trouble with loan debts not being repaid, thus leaving banks unable to do the same. As world economies fought to keep their heads above water, investors were starting to bail and forcing the government into a position where they could do one of two things: allow failure only to deal with the fallout, or prop up certain industries by following a variety of bailouts and temporary financial relief measures designed to protect banks from foreclosure in the hopes that it would stave off failure. Far too many citizens were furious and took to the streets in places like Greece as the government resorted to failed bailout measures that left the country on the brink of financial collapse. The future is still uncertain for Greece.

Meanwhile, countries like Iceland took a harder line approach and refused bailout monies to those on the brink of collapse. As a result many feel that Iceland has bounced back and not felt the harsh conditions that are currently being experienced elsewhere in the world. This brief introduction to the European sovereign debt crisis can teach you as a business owner many things about how to do business successfully.

First of all, keep debts manageable. While a certain amount of debt is a good thing and can actually help you to raise revenue and make the business more profitable in the long term, the high risk chances that people take with copious amounts of debt are what need caused the turmoil in this debt crisis. So set your goals realistically as a business, and try not to reach too far beyond them until you've assessed your efforts and created some new realistic goals.

Secondly, look at the way that you are doing business and find the places where you can make some smart cuts. Tough economic times encourage business owners to be more careful with how they're spending their money and how they're handling everyday operations. If you need not reevaluated your organizational structure and your cost saving initiatives, then you could be doing yourself a real disservice in the long run.

Thirdly, never expect anyone else to bail you out of a jam. Governments are becoming increasingly aware of how bailouts essentially throw good money after bad and prolong the inevitable. Instead of continuing to fund failures, many people are waking up to the idea that one needs to be held personally accountable. No one but you can make your business connect with the public successfully.

by: Gen Wright

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