subject: U.s. Report Said That Greece Could Trigger The Next Wave Of Global Economic Crisis And Turmoil [print this page] U.S. "Washington Post" recently published, entitled "Greek debt crisis to the United States and other countries may cause trouble," the article, excerpts are as follows:
Greek comparable economies of scale and Massachusetts. The Mediterranean countries to buy U.S. exports accounted for 63 globally. The distance between Athens and Washington for the 5139 miles. However, despite the geographical distance between them and trade relations so far, but Greece's debt crisis has been brought to the U.S. economy, some new risks?? Perhaps distant, but very realistic. Economic policy-makers, and many private analysts see the Greek debt crisis will trigger the next wave of global economic turmoil risks. Investors are a lot of money will be invested in government bonds around the world that it is unpredictable period of insurance investment. This allows most of the big country to keep interest rates low and promote global economic recovery.
However, if the debt owed, or close to the Greek long-delayed debt, investors would cast doubt on these assumptions, suspect other countries, including Spain and Italy and even Britain and the United States, the safety of bonds. If you see that the risk increases, investors will demand investments to improve their lending rates, leading to bank on interest rates Ershi inhibited economic growth. For example, mortgage rates will rise, business loans for the expansion will raise the cost of capital.
Some analysts worry that, as the sub-prime?? Its global finance only a very small part of the?? In 2007 triggered a major crisis in Greece may also have much larger world, but also significantly more stable cause problems in some countries.
An taste of Thailand
Global financial crisis as a lesson, the crisis will often develop in a manner difficult to predict. This is the late 20th century, a lesson 90, when the debt market in Thailand led to investor worries about some other economies in East Asia's financial situation cast doubt on the results led to 1997? 1998 Asian financial crisis.
Hanover Capital Group Managing Partner, Dag said: "Greece is like 1997, when Thailand, just like the summer of 2007 the sub-prime." This infection has not yet started from Greece, forecasters generally believe that such a possibility is a " trailing risk "?? not likely to occur, but in the event, it is very troublesome. Greek financial market problems seem quite confident that they will be limited to Greece and several other government financial great European countries.
Although the private decision-makers in Washington worried, but only said publicly that they are concerned about this situation and believe that the European authorities to take responsibility for any relief. So far, this problem has led the U.S. government can borrow money at lower costs, as investors shifted funds into U.S. dollars?? Particularly treasury bills, to reduce the situation in Europe changed by the risks.
Greece also reported good news, it successfully sold 50 million euros (6.8 billion U.S. dollars) in the 10-year bonds, which reflects the estimated global investors Athens to solve its debt problem. However, if the debt crisis of confidence in the government once it started, it can quickly spread, as European economies associated and linked with the rest of the world.
by: gaga
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