In Europe, Tough Times All Over
In one of the first phrases of the NBC news report entitled “In Europe, Tough Times All Over”, the anchor utilizes the term “global crisis” to refer to the widely spread economic debacle that took place around 2009 (and that is still going on). I completely agree with the usage of this term, since this was, indeed, a global phenomenon and it is an excellent example of how the process of globalization has created a complex system of nations in which, when an important event occurs in one of them, it may easily affect the others.
If the main causes of the crisis are analyzed, it is clear that there are certain common characteristics with previous financial recession events; such as a prolonged period of credit growth, low risk premiums and the creation of a real estate “bubble”. However, the extent of this particular crisis is unprecedented, and this is thought to be mainly due to globalization. Nowadays, almost all nations operate with each other: without a globalized world, such a big crisis would have never occurred.
However, even though the crisis can be thought of as one big global phenomenon, its outcome has been different in several countries, which proves the individuality of nations within the globalized world. One example of this observation may be extracted from the video itself: for instance, the main issue Hungary is facing is the lack of funds and the difficulty in paying loans and loan interests, which are now one third more expensive than they used to be. While in Spain, unemployment is one of the main difficulties affecting Spanish people, especially in the construction sector, for which demand has dropped significantly. So, even though the crisis is the same, not every country experiences the same issues.
Another example of this crisis affecting countries in a global fashion is the situation that Greece went through recently. A loan from other European Union countries had to be made in order to help...