If you're like me and need someone to explain the European economic crisis to you like you're five, check out this blog post which briefly breaks down the causes and history behind the debt problems in the Eurozone. Not exactly clear what the implications for Washington and the U.S. are yet.
2 comments:
Thank you for posting this Michael.
To answer your question about the implications, this crisis impacts all the world markets and stock prices will fall dramatically. Whenever news comes out from Europe, you'll notice a reaction from the market place. Stocks "rally" or slow and go red.
If the situation is not contained, there are implications for a double-dip recession.
The US stalling and has impacted other markets. Now if Europe stalls, that impacts China, if China stalls, we're all screwed, not only do they hold US bonds, they're also a powerful market. Their GDP is 5.88 Trillion.
Because the market is a confidence game, there's already a shift in public policy, in the US, to handle our debt...solutions yet unknown.
VB
props for the scumbag steve reference Michael
As for the implications Victor discussed. I am quite frankly terrified at the prospects of a serious European recession. I think its all but unavoidable at this point and I believe that the consequences will negatively impact the rest of the world. I do not think we will be out of this economic stagnation for quite a long time.
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