Sunday, November 13, 2011
Greece lightning
The prime minister’s botched referendum plan has left the debt deal in trouble. Doubts about the deal had emerged even before the Greek thunderbolts. It was not clear that the euro-zone leaders had done enough to bolster their rescue fund. European leaders hoped that emerging economies, particularly China, might put money into a special purpose investment vehicle capitalized by the EFSF. Investors were also unnerved by signs that the European economy seems to be slipping closer to recession. Global markets took their cue from Europe, with the Dow Jones Industrial Average falling by 573 points over the course. But a European collapse would still be very bad news for American banks and exporters.
Subscribe to:
Post Comments (Atom)
The eruo-zone need to figure out their problems but I don't think it will help the united states. It will just give more people confidence in the global economy. It could hurt the U.S even. It means more people would invest in the euro than the dollar.
ReplyDeleteIf the Euro-zone were able to resolve its issues the world economy would benefit greatly. Exports to Europe would increase, helping other countries economies to recover as well.
ReplyDeleteI'm a little surprised to hear of the hopes or potential expectation of China. Nation's within EU are alone reluctant to help Greece, especially since it's an reoccurring incident.
ReplyDeleteWhile it would be bad for the world economy and especially the European Union if Greece defaulted, it is getting harder and harder to get funds to help out Greece. This makes sense, because Greece is such a risky place to put your money as this event, as well as previous ones, has shown.
ReplyDelete