Fragile global economy

The Greek cisis is a bad sign for the global economy. Many countries have large budget deficit and depend on borrowings to finance the deficit. Lenders are now worried that these countries cannot repay their debt.

The crisis is now affecting Europe. It is likely to spread to other countries. The countries that have large budget deficits that depend on borrowings include the USA, UK and Japan. Investors may lose confidence in these countries and lead to another crisis.

Look at what happened to Dubai and now Greece. It is a matter of time before the loss of confidence spread to other countries.

The global economy is fragile. It is bad to depend on private money to fund government deficits.  A lot of the private money are in hedge funds. I consider these hedge funds to be financial terrorists. They can bring down a currency or a country, so as to make a large profit from the destruction. I think that hedge funds should be banned.

Tan Kin Lian