Austerity measures are painful but necessary. I think that ten years from now you will be better of than the Americans, simply because the austerity measures are stopping all the malinvestment and over-consumption as quickly as possible. I'm Swedish and we went through the same process twenty years ago when our real estate market crashed. Luckily we didn't do like Japan, which still hasn't recovered from their crash from the early 90's (they did what the FED is doing now).
Bankruptcy is never fun but it's the main thing that makes a market driven economy more efficient than a planned economy. You have to stop malinvestments and reallocate resources to something more efficient. This reallocation can be painful but is necessary in the long run. The recession is not the problem, the boom was the problem.
Austerity measures are painful but necessary. I think that ten years from now you will be better of than the Americans, simply because the austerity measures are stopping all the malinvestment and over-consumption as quickly as possible. I'm Swedish and we went through the same process twenty years ago when our real estate market crashed. Luckily we didn't do like Japan, which still hasn't recovered from their crash from the early 90's (they did what the FED is doing now).
Bankruptcy is never fun but it's the main thing that makes a market driven economy more efficient than a planned economy. You have to stop malinvestments and reallocate resources to something more efficient. This reallocation can be painful but is necessary in the long run. The recession is not the problem, the boom was the problem.