I'm English & yeah England has money problems and I'm sure America have as well, but I was speaking to my Business Studies teacher and she said that it's basically all Americas fault because they borrowed to much money and we had to pay them back.. is this true? Because teh government adverts that are only telly say simular things and that the only way to stop the money problems is for the countries to get together and work it out some how
But is that true? How did it happen? And why did England pay them back?
Sorry it's just because I don't really understand
Is this about the current global financial crisis? If so, your teacher is drastically oversimplifying things. And for many British investors, their problems are just as closely related to what happened in Iceland.
Anyway, the truth is, European banks and firms have no one to blame but themselves for their meltdown, just like their American counterparts. They also relied on short-term loans for finance, borrowed massively compared to their deposit base, and bought subprime debt available from the US. Another problem unique to Europe was that some lenders were administered by both the national and EU governments, and no one was sure who was supposed to monitor what.
But, if that's what your teacher is referring to, it's hard to find fault with her.. She is just echoing many European national leaders, who found it politically easier to blame the US for their meltdown rather than take accountability.
The billions, probably trillions over the years, that America has given to other countries for aid and support shouldn't be overlooked either - in some cases, only to be given the short end of the stick in return - the fault is percieved because so many other economies were/are tied to and relied on America's economy to be strong - hopefully all will come back stronger than ever down the road.
same here, and someone will give a whole lot better answer than me, but I do know that America borrowed a lot of money back during the wars and stuff, and we borrowed so much that we couldn pay the countries back, so therefore, America is sitll debt from it.
I dont think we should really point fingers. we should all get together and sort this out beacuse too many people are soo poor and too many people are losing there jobs over this reccession.