The BBC news website has posted an article "Eurozone Crisis Explained." Despite the belief that the Eurozone crisis was caused by government defecit spending, this was only true of Greece, not the other Eurozone countries. What actually happened is that Europe underwent its own real estate bubble, which burst in 2008. Many European governments then had to bail out their own banks at great cost. The real problem, then, was uncontrolled speculation. The European Central Bank has recently announced measures to ease the situation. Whether this does any good remains to be seen. In any case until Europe recovers the world economy will remain in bad shape.
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