The phrase “Greek default” has been on the pages of newsstands for some time now, as the world fears the worst may come to Europe. Worst case scenario could mean the breakup of the Euro Zone (or countries that share the euro) and downward economic spiral of some of the richest countries in the world. This week, European leaders agreed to yet another bailout package for Greece.

However, the picture is not as rosy as it appears. A leaked document by the IMF reveals that the bailout will not be enough to save Greece from fiscal demise. Furthermore, the report expects the austerity measures taken, will hold Greece’s economy too low for Greece to be able to recover from of its fiscal debt crisis.

Washington could learn a lot from Greece’s example. By regeining  in spending and reducing our deficits’s, hopefully we won’t need to be asking for a bailout of our own.

For more information on the terms of the bailout and what this will mean for Greece, see our fact sheet.BA