Will the economy recover once the European debt crisis is over ? :)?

I really miss the days when everybody had jobs and my parents had a lot of money and we would go on vacations and stuff. Now my mom has been unemployed for alomst three years and my dads hours at work have been cut back by a lot but this has been going on for the last two or three years so it seems to be getting normal living like this lol but i want it to get better so will it soon? or do we have to wait it out like the great depression.. or will it stay this way forever?... or possibly.. COLLAPSE?%26gt; : O ...|||The current path we are on will never solve European or US debt crisis.



Look at Greece, all the bailout has done is put Greece further in debt, Look at Italy, Spain, Ireland, UK and others..., Look at the US from 9 trillion in 2008 to 16 Trillion in debt now.



In the beginning the too big to fails where corporate debts we should of let them fail, the result of those bailouts is now the debts have become Sovereign debts. The Banking system is already insolvent, their books don't make sense anymore instead of holding real assets like shares in companies, they are holding default swaps and derivatives which are nothing more than gambling bets. The world banking system is interconnected if one bank fails other banks fall like dominoes



Greece was bailed out because the EU, Germany, France and others where fearing a banking meltdown across Europe if Greece defaulted, so basically the EU forced Greece to take a bailout for their own sake, not Greece's.



The bailouts do nothing except increase sovereign debt and temporarily prevent a immediate collapse on the pozie scheme the banks are running. The truth is nobody has a solution to the problem, they keep proping up the system to avoid total collapse as needed, but eventually they'll run out of options and world financial collapse is inevitable.



Actually there probably is one solution, and that is the forgive all sovereign debt, do a total reset.. and let all the banks fail that will fail. This would be initially severe and catastrophic for everyone, but it would be short lived, new banks and businesses will emerge and we can start over. I believe this would be a better option than live with austerity for the next 10, 20 or more years. Of course the controlling elite will fight tooth and nail to prevent this from happening.



Also a sovereign debt reset is not that inconceivable, Greece almost had a referendum, I recon the people would of voted for a default, you only need one country in Europe to default and it could easily cause a cascade of other countries to follow suit.|||No. The "remedies" being applied by the morons at the U.S. Federal Reserve and Obama's inflationary policies will kill off any recovery that might have occurred despite the measures and draw the pain out for many years, possibly 10 to 15.





This is mostly due to potential productivity being misallocated due to distortions of the economy, especially the huge amount of inflation which has occurred since 2008.|||I would go for YES. Even when the debt crisis is far from over,the economy is improving.|||the european debt crisis will never be over ALL european governments spend way more than they take in by taxes so borrow billions every month , just like our government does|||It can recover, if allowed to. The reason for the crisis(es) has always been too much government intervention, and the only solution is to allow the toxic assets created as a result of policy incentives to be liquidated.





Of course, this is a painful process, just as it is for the overweight person trying to lose weight. Getting overweight is easy, and even enjoyable. Losing the weight takes much longer and is much more uncomfortable, sometimes even painful.





Likewise, Governments don't like telling their constituents that the ride is over and the next phase is going to be painful (as you and your family are already feeling). Consequently, they will instead try to intervene, only making matters worse. This is usually done by blaming "free market" policies that never existed.





For this reason we all need to prepare ourselves for a lengthy painful process, which won't end for a while.....especially now that elections in the States and Europe are around the corner. More grand promises made and blame thrown in the wrong direction.