On Capitol Hill yesterday, Federal Reserve Chairman Ben Bernanke told members of Congress that what he called a disorderly default by Greece could lead to runs or stresses on European banks, which he said would create a huge amount of financial turmoil that would have, what he said, was a substantial impact - not only on our financial system, but our economy. And that's one of the reasons why the stock market has been so weak lately.
US investors are worried about the fact that there's a recession in Europe. That means WE (the US) will sell less of our goods to Europe, but US investors are also worried about this kind of financial anxiety which leads everybody to hold back, causing US companies to be reluctant to make risky investments or to hire.
Right now our economy is so fragile that the least little bit of negativity could generate a huge self-fulfilling prophecy.
3 comments:
Hey, how come we cant copy/paste here? I wanted to post a comment by the IMF. Its worse than we think!
You can copy/paste using ctl-v for paste. I left this comment yesterday but now its gone.
Gremlins.
Don't you just love it when we here in the US can tell Greece what they should be doing regarding austerity and yet all the while we are grossly spending way more than we take in?
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