The World Upside Down

By Foroohar, Rana | Newsweek, May 3, 2010 | Go to article overview

The World Upside Down


Foroohar, Rana, Newsweek


Byline: Rana Foroohar

Is Greece the new Paraguay?

Europe has had plenty of embarrassing moments in recent weeks. Aside from the inept response to the Icelandic volcano, which also shot a cloud of jokes onto Facebook (my favorite: "Europe to Iceland: we said send cash, not ash!"), one of the lowest points had to be Greece's attempt to sell itself as an "emerging market." That was the pitch to investors this month, as the Greeks began offloading billions of dollars' worth of bonds by advertising that their yields (and their risks) were higher than those of any number of poor developing nations.

It's truly a sad day when the cradle of civilization has to rebrand itself as Paraguay. In keeping with its new status as a pauper nation, Greece is likely to be bailed out by the International Monetary Fund and the European Union for a total of $60abillion. Yet it isn't even the biggest basket case in the Western world. Italy suffers from a debt five times as large, and is also teetering on the brink of insolvency thanks in large part to its truly absurd leader--Silvio Berlusconi is a distressed asset if there ever was one--and a finance minister whose suggestions for improving the economy have included offering amnesty to any Italian willing to bring home his or her illegally acquired assets. (Mafiosi, call your accountants now.) No wonder banks such as Morgan Stanley are speculating that Germany, the biggest continental economy, might actually pull out of the euro zone in order to avoid having to bail out any more of its neighbors.

America and Britain shouldn't laugh. The U.K. has run up debt faster than any major economy over the last eight years, and the U.S. isn't far behind. Both are in danger of losing their AAA credit ratings if things don't improve. According to the Council on Foreign Relations, America is now the world's major financial gambler, as the government's portfolio has been filled in recent years with riskier assets--the U.S. tends to hold more potentially volatile equities, for example, than other big nations. Poor countries, on the other hand, are spending more on "safer" bets, including U.S. T-bills, which are now 57 percent foreign-owned.

The whole idea that developing nations are more dangerous, financially speaking, is fading. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The World Upside Down
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.