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Financial Challenges for Countries are Not Uncommon Of course, there are no exact precedents for the financial challenges faced by America and many other countries in the world today. Yet a quick overview of a few government and corporate financial crises may illustrate how managements have addressed — or failed to address — the problems of their day. KP www.kpcb.com USA Inc. | Consequences of Inaction 421 History Doesn't Repeat Itself, But It Often Rhymes’ — What Can We Learn From These Credit Crises? Sovereign State / Local Corporate Credit Crisis Financial Woes Bankruptcy 2010 — Greece 1975 — New York City 2009 — General Motors ($374B Debt Outstanding — | (¢44B* Debt Outstanding) | ($95B Debt Outstanding) 113% of GDP) 2009 — Dubai ($26B — 32% of GDP) 2001 — Argentina ($132B — 130% of GDP) 1998 — Russia ($73B — 27% of GDP) Note: 1) Attributed to Mark Twain. *NYC government and subsidiaries had $14B debt outstanding in 1975. Adjusting for inflation, $14B of 1975 dollars would have been ~$50B in today’s dollars. Source: sovereign data points per IMF and Pp World Bank. NYC data point per California Research Bureau “Overview of New York City’s Fiscal Crisis,” 3/1/1995. (@ EB) www.kpcb.com USA Inc. | Consequences of Inaction 422 HOUSE_OVERSIGHT_021052