ok here is one more question for the economy gurus! [:)]
nobel price winner Krugman recently stated that he thinks Austria runs the risk of going bankrupt because of all the defaulting loans that the private banks of the country gave to eastern europe (200 billion $ = 2/3 of the cross national product of the nation).
Here is the question … why would a country, whose debt level is below that of many other western countries, go bankrupt just because some or all of its private banks go bankrupt? With a free european market and the Euro as currency wouldn’t the Austrian banks simply be replaced with lets say German, Swiss and French banks?
Any ideas?
G.