When the government becomes excessive leverage, what happened?

When the government becomes excessive leverage, what happened? 

In the past two years, we have seen turmoil in the euro area, it also affects the Asian markets. Portugal, Italy, Greece and Spain (PIGS) are still trying to solve the crisis in the eurozone main focus. All of these countries have in common is a very high level of debt is not sustainable without assistance. 

Why do they have so much debt? It's for many reasons, including the demand for no reason, corruption, bloated public workforce, a large number of social welfare, which may lead to unproductive labor and large-scale projects and infrastructure excessive development. So far, they have been engaged in austerity measures, or from other euro-zone countries to cut spending in order to obtain relief funds. 

However, the latest news is shocking short. Mediterranean island of Cyprus, to take from depositorâ bank account funds to finance aid known as general publications money. More than EUR 100,000 accounts have taken from them by 9.9%, while those below the 100K taken from them have 6.75 percent. Can you imagine you would think the government decided that if the next day you wake up and your hard-earned money away 10 percent? They even the degree of obstruction to prevent their money from the bank depositors shifted out electronic transfers. 

Itâ € ™ s is based on the income tax not included. This is just based on your own cash assets. How retirees? They afford to lose 10% of its funds, does not endanger their own retirement? It may be that they can think of possible solutions deteriorate. It undermines the foundation of the banking system. Governments should ensure that banks, stabilize the banking system, rather than take the money. 

Singapore is a very good location, in this sense, the government's budget surplus does not require the assumption of debt. Coupled with a strong currency and low tax rates, it € ™ reasons, Singapore will continue to attract visitors from all over the country's wealth. 

Malaysia but in a precarious position ever increasing debt levels. It does not help the government continue to engage in large-scale projects, such as Tun Razak Exchange, money politics, corruption, etc. This is a general election is definitely a look over the next ten years could make or break the government € ™ s financial soundness.