Saturday, November 27, 2010

Europe's new contagion worries

CNNMoney.com- Nov 27, 2010

The debt crisis on Greece last spring has a negative effect on the value of the Euro now, which causes fear of a double-dip in the last global recession.

The independent US dollar can be printed more in the US to boost government spending, but since the Euro is used for all countries in Europe, Greece cannot print its own currency.

The crisis is spreading throughout several countries in Europe, according to this article.

Since EU is a big market, effect on the economy in the continent will cause a shift in the aggregate demand in the US market too.

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