Portugal Bonds Turn Toxic

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The European Union was created in an effort to unite Europe in a way that would be beneficial for all countries concerned. While this has been a dream with some realizations towards that goal a lot of things have changed. Since the economic crisis occurred more than ten years ago the EU has seen certain countries begin to falter. Among the earliest to show signs of weakening economically were Italy and Portugal, and immediately other wealthy European countries bought their debt in an attempt to help. French banks and others bought a large quantity of Portugal debt that has been defaulted on to one extent or another, and the French banks are left to absorb the loss. This is not a good position to be in by any means since the EU as a whole is beginning to experience a lot of trouble.

The nature of the EU is one of togetherness, and while this is an excellent stance in times of prosperity many wonder how it well it will serve them in times of crisis. With Portugal on its way down and Greece, Ireland, Italy and others showing serious signs of joining it, how much longer can the group survive. The recent debt purchases where Portugal is concerned sent the Euro climbing on the online forex exchange, but within a couple weeks investors backed off. The simple truth here is that the country has been in trouble for a long time, and nothing has really changed. Giving too much credit to a country, person, or other entity will only enable them to continue to make mistakes. There have to be consequences in order for there to be an adequate measure of learning.

With Portugal on its way towards a bailout the EU has never faced these sorts of issues before, and the likely result is not going to be pleasant for any involved. The EU needs to realize that this is a failed experiment and re-create sovereign currencies while attempting to do as little damage as possible. The prosperous nations within the EU such as Germany are becoming sick and tired of propping up countries like Greece and are beginning to voice their displeasure. While this might not lead to an immediate problem, the simple fact is that the EU needs to adapt to a worsening economic situation. Without the ample willingness to carry this debt by any means necessary there is little chance of making a comeback any time soon.

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