Clive Crook of the Financial Times had a good article today comparing Greece in the EU to California in the US. He also laid out how Greece defaults would likely affect the US economy. Is this another symptom of the information age? Fast pace computers, and instant access to information have combined us into one large interconnected web. Rather than raising the lowest to new heights it appears to me at times the lowest will bring down everyone with them. irresponsible spending governments will send cascades of defaults through the entire system. It appears to me that this to is a growing pain and learning lesson for globalization. Not all interconnectivity is good. If you have a computer that is infected with a virus it is easy to fix or replace, but what happens when you have an infected network? Greece and California are two large examples of infected cogs in the machine. There are many more. It is quickly looking like the perfect economic storm. A fragile if not non-existant economic recovery does not need much more than a reason to panic to hurt the system.
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