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Harsh Lessons from the Eurozone Crisis

Why the Eurozone Crisis of 2010 Happened

The Euro Area Crisis of 2010, known as the European Sovereign Debt Crisis, was a financial crisis that extended from the U.S. Financial Crisis of 2008. As the name suggests, the primary culprit of the financial crisis had much to do with periphery countries borrowing too heavily in an overheated and widely integrated economy. When the flow of capital dried, the governments suddenly found themselves on the edge of bankruptcy. This was very much true in the cases of Greece, Ireland, Spain, and Portugal, Cyprus and Italy, all…