Oct 30, 2008

Buddy Could You Spare $25 billion?

Yesterday, the EU invoked an obscure clause in its governing treaty to save Hungary’s capital markets from collapse.

So how did Hungary go from post-Communist golden child to Argentina of the East? Low interest foreign credit cards, in part. Like freshmen on a college campus, Hungarians signed up for foreign credit like it was going out of style.

FYI: Bulgaria has a similar problem. But the EU is all out of bailout money.

If you're interested, here's a primer on "The rise and fall of Hungary…"

1 comment:

Ern said...

LOL! I love the idea of comparing Eastern Europe to college undergrads.