This article discusses another Euro-zone problem, with French banks having substantial holdings in Italian, not Greek, debt. French banks are “among the worlds’ biggest, and are closely linked with their counterparts in the United States.”
While we are all well aware that our American $ will also ultimately be affected by the euro crisis, this article attempts to explain to an extent, how intertwined the US is with European banks.
The article also discusses the various ramifications from the leaders of severely indebted countries leaving office (most notably Greece and Italy)
Although this may result in appreciation of the dollar (if growth/recovery continues), exports will then become more attractive potentially limiting the amount of manufacturing jobs available, and prolong the high unemployment rate America is experiencing
ReplyDeleteEuropean authorities acted too slowly to take measures to control the greek debt problems... and the fire has burned Ireland and Portugal, has reached Italy, is menacing Spain and -unless the EU, the national goverments and the european central bank made their job- will also burn France, Austria and Belgium.
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