Concern for US from Europe’s Financial Troubles
The recent statistics released, regarding job creation in the US sent, stocks spiraling downwards. The Dow lost 275 points, being the largest decline since November. This was copied in the world markets, with severe losses in Europe. Adding to the tale of woe was the increasing apprehension related to personal finance, an economic downturn and the instability of Europe’s economy hurting the US.
The economic clouds looming over Europe are a cause of great concern generally, particularly in the US. Concerns regarding another recession, created by the unemployment report, are caused not by the threat of a downturn in the housing market, but originating from Britain. Also lurking in the background of financiers minds; is the thought of to what degree is Europe’s economy hurting the US!
The Euro-zone is reporting unemployment at 11%, which is the highest since 1999 and displays the fact that the Euro-zone in general, is experiencing various influences of financial crisis. General Electric’s CEO, is reported as saying recently that Europe would play a smaller role in the company forward planning. With indicators such as the potential bankruptcy of Greece and its banishment from the European Union, various companies in the US are cutting back and personal finance management is being tested.
British Prime Minister David Cameron took office during 2010. Widespread austerity measures were announced by his coalition government. These included a reduction of almost 500,000 public sector jobs and increasing the retirement age. Huge protest was forthcoming and today, Britain is facing a highly significant recession. Is this an indication as to the influence posed by Europe’s economy hurting the US, especially with regard to personal finance!
As Britain is celebrating the Diamond Jubilee of Queen Elizabeth II, a statement was made by Mr. Cameron, to the affect that he believes the British people understand the difficulties a country and an economy may face. This relates to problems with debt and its associated issues the world over.