Greece Financial Crisis?

I know I am a little late to the news but I was wondering what caused the Greek economy to fall? How does the European nations supporting Greece out of debt make the stock market fall? Please explain as simple as possible please =)|||Starting in the 1980s Greece adopted a lot of social programs to become a welfare state -- a true labor union paradise, with a wasteful government promising much too generous benefits, and enacting much too generous worker protections. They things we've learned about such things as insanely high severance pay companies must pay when they cut jobs, and very early but generous retirement pensions, are crazy.





They behaved as if money grows on trees. Additionally the government is full of cronyism and waste, and everyone massively cheats on their taxes. After a few decades of that, Greece racked up unsupportably high government debt, to the point where it cannot make its next round of interest payments without being bailed out ... it is literally financially bankrupt.





Being in the Euro zone is a big part of Greece's problem -- it can't just print money for the government to make payments, because Greece doesn't control its currency. Also this impending problem was hidden til recently because past government simply lied about their fiscal numbers -- they cooked the books until reality caught up to them.|||Simply put Greece has over spent on its public service workforce and given too much in benefits, to put this into perspective for you let me give you a few facts


1) The Greek government has cut public sector pay by 30% and still cannot get the budget to balance.


2) You only need to work 35 years in Greece to get a full pension, in Germany its 45 years.


3) The pension in Greece is 80% of the average wage in Germany it about 45%.


4) The loan of over 100 Billion is not enough for Greece they still need to cut spending in order to survive.


5) Greece has a very lazy attitude to collecting taxes.


6) It has very little industry instead relying heavily on the unpredictable tourist trade.


7) Greek bonds have a high yield which means investors are reluctant to lend to them and if they do it is at the highest yield in Europe|||i am in awe of spottyj answer ,,,,,,,,,,,,i concur with him





good luck