European Debt Crisis- The example of Greece

• Main Authors: Hui-Sheng Yang, 楊輝生
• Other Authors: Bang-HanChiu
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/62239813748203846908

碩士 === 元智大學 === 管理碩士在職專班 === 100 === Abstract European Debt Crisis - The Example of Greece Student：Hui-Sheng Yang Advisors：Dr. Bang-Han Chiu Submitted to Executive Master of Business Administration Program College of Management, Yuan Ze University In the peak of financial crisis 2008, the top five American investment banks, Bear Stearns collapsed and was forced into a merged with JP Morgan, Lehman Brothers filed bankruptcy protection, Merrill Lynch was acquired by Bank of America, and the rest were bailout by US government. Soon, the governments included US, Europe, Asia were forced to provide stimulus packages to pump in liquidity to market and stirring up the world economic in order to avoid further Deterioration and recession. After financial crisis unfolded from the ground-zero of the USA then spread out to the other countries, especially high leverage with deficit budget countries became a potential problem. In 2009, Ireland collapsed first and then investors are beginning to question Greek repayment loan ability, and soon spread to Italy, Portugal and Spain so-called European PIIGS. Sovereign debt are studied for a time but usually been focused on emerging countries, and no precedent for Euro zone. The purpose of this paper is trying to use Literature analysis to explain what caused the European sovereign crisis of 2009 and led it to a severe situation. We chose Greece as a research target, and made a study with Debt-to-GDP ratio and Credit Default Swap (CDS), the easiest and efficiency way to find the smoking gun of European debt crisis. At the end of paper, there are a few conclusions and suggestions based on above research and assumptions, these conclusions and suggestions also support the possibly solutions for the Greek sovereign debt crisis. Keywords：Financial crisis 2008, European PIIGS, Sovereign debt, Debt-to-GDP, Credit Default Swap