Bigger Debt Loads for 3 Nations: EU

The EU warned that the debt load of Greece Portugal & Ireland are likely to be bigger than forecasted, adding fear that the bailout by the EU are failing to solve the region crisis. All 3 countries have debt levels above 100% of GDP.

Greece’s debt level will reach 157.7% this year and 166.1% in 2012, which is higher than forecast in last autumn at 150.2% & 156% respectively. Euro zone governments are like to open discussions on a second bailout for Greece after it was granted $110 billion Euros.

Countries amongst the EU region are bound to shoulder each other’s debt especially in the case of Greece, Portugal & Ireland. This compiles the risk, so long as any of the PIG defaults, it may cause a domino effect on the whole region & possibly be the start of the EU financial crisis. 

Managing personal wealth is very much like handling a country’s economy health. One need to be clear minded & prudent in handling income (GDP) and expenses (Spending & Net Imports), as well as their approach in managing their assets & investment. Handle it wrongly, and one’s finance could possibly end up like the case of the PIGS.

When was the last time you took a good look of where your assets are invested? And if they are in the Europe region, what you do?

In this time of uncertainty, most investors are likely to move out of the Europe region. However, do you know where else should your assets be relocated? Do you want to know what the alternative investments one could consider?

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Original Article: Straits Times 14 May 2011, "Bigger Debt Loads for 3 Nations: EU"