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February 24, 2010
Economic contagion spreads throughout Eurozone

A wave of unrest is building across Europe, as governments there seek to impose austerity measures.

Several European countries — Greece, Spain and Ireland — are deeply in debt and under intense pressure to slash spending.

Today in Greece, thousands of workers went on strike to protest those cuts, bringing the country to a standstill. Spain saw similar protests yesterday.

For more, Martin Savidge interviews John Authers, investment editor of the Financial Times.

Our German partner Deutsche Welle has been reporting extensively on the crisis in Europe. Worldfocus presents several of their reports for a unique view of how the economic problems are playing out in Greece, Spain, and Ireland.

Do you worry that the financial crisis in Europe will slow the recovery in America?

Tell us what you think in the comments section below. Please be respectful and on-point. Malicious or offensive comments will be deleted, and repeat offenders will be banned.

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Comments

20 comments

#20

Good and true points Earle,

#19

The countries facing economic problems in Europe have created their own problems. One, they are unable to modulated their own economies because they use the Euro and can not set interest rates for the by country to country. Most of the countries facing economic problems have followed agendas of massive public sector employment without sufficient tax bases to support their policies. These countries know they had a housing bubble, just like the US did, but they let it burst. You cant blame everything on America.

#18

The Federal Reserve Bank has destroyed America,period! America under President Wilson (1913-21),and his cohort Aldridge gave full support,and legislative passage to this private “U S Central Bank” entity newly titled, “The Central Bank of America” run independently by the wealthiest people/families in the universe,having complete control of our monetary system! Memo: does the “New World Order” or “Globalization” sound familar? President Wilson was literally brain-dead by the time this bill passed ,and his “second-wife” virtually ran(called all the shots) the White House that was tightly closed,and heavily monitored infirmary for the sick Wilson. Wilson’s…Vice President wasn’t even allowed too particiapate in briefings/meetings,but was kept out of the loop for Wilson’s entire presidency,nice! His wife was in total control,…remarkable,or is it? Now,getting back to the Central Bank via the Federal Reserve,and it’s cause,and effect on America’s Financial solvency regarding it’s independent destiny. The United States Treasury has always printed our money ,controlling inflation,and deflation quite admirably,contrary to what the “Money Changer’s” have said, and never having a problem,other than the tricky cost of paying for a costly war,(which by the way America has seen a half dozen since the Central Bank took control ?)but had always weathered the storm. There is no interest paid to the Treasury,…it prints money only when needed,…a “pay-as-you-go-system” that has worked fine for all governments throughout milleniums. This so-called responsible Central Bank that prints money out of thin air is a money-making machine for a few,and since it’s inception has lowered the household income of every hard working american to levels we haven’t seen for fifty years plus years. Yes,…the american people have been dooped by Wall Street,and this aberration we call the “Mighty Fed” which gets paid for printing money out of thin air! Really cool,and nice if you can get in on it,but you’ve got to be a foreigner? Finally,… America needs a central bank run by the treasury,and only the treasury ,as it always was,and should be today. Thanks Worldfocus

#17

WHAT EVER YOU POLITIAL CUP OF ..TEA IS …wheather you be a socialist or a progressive..to a liberal …it all comes down to BABLE…..WEIGHT OF BIG-GOVT.’ SPENDING ..WILL TOPPEL …ANY GOV.T’? $$$$$$ !

#16

Second comment # 9 Michael hit the nail on the head – long prison sentences and life without paroll. What the crooks on Wall Street (Bankers & Investment Houses) have done to the “””world economy””” is above description. Those SOB’s have no conscience – they laughed in our faces and Obama rewarded them – heavily! Jim @ USA

#15

I don’t worry; the economists have it all figured out. We just have to save more, spend more and work harder and longer for less pay, then everything will be OK.

#14

Whoever said the U.S. economy was going to recover? With summer gas prices predicted to hit $3.30 or higher, there is no recovery in sight. And whichever politician said the economy was or is recovering is a lier or a misinformed economist. If renewable energies do not relieve the pressure of rising fossil fuel prices soon, this “globalised” economy will not recover. The growth rates of developed countries has been astounding and is eating into America’s huge portion of this finite pie called Earth’s natural resources. This recession will continue or get worse until we get renewable energies on a rapidly growing track, and stabalize the population growth to reduce our massive consumption of resources. For all Americans out there, you better start learning how to live with less.

So, yes, the financial problems in Europe will indeed have an impact on the United States. The only question is; how many more problems can you pile onto this global recession before the entire “house of cards” begins to fall?

#13

If the European Union fails to act quickly and decisively to secure financing for the economies of Europe, then, the integration of global economies will result in a double-dip recession. The economic ripples now hitting economies knee-high on the other side of the “Pond,” in the Euro-zone will be amplified by nervous American consumers into a economic tsunami that will drown our meager recovery. Its a question of how much damage not if it will damage our economy– as we fall deeper into a prolonged recession.

#12

Look at the countries that mostly escaped the brunt of this latest Wall Street-cooked financial chicanery … it’s instructive and telling. Darn right we’re at war — in more than a few theaters. Will Europe look eastward and play hardball with the US, like China? Not likely, alas. The US wrote the playbook; it bullies and cons everyone into their game, and always pulls yet another rabbit out of Uncle Sam’s hat. And that is why the US is so well loved and respected the world over, isn’t it? Lawyers and lobbyists run things — and the average American is overwhelmed by metric, so, the more mayhem the Wall St.-Washington alliance can produce, the more things stay same old. Ah, democracy American-style, so reassuring, isn’t it?

#11

Yes, it very well could slow our so called recovery. The bankers and Wall Streeters have spread their vastly over leveraged derivatives, (many call fraudulent) the world over. The US has lost an estimated at 8 million jobs, the world 27 million. All because of the sheer greed of a small handful of bankers and Wall Street investment houses, “to greedy to fail.” Now they are taking down whole countries because of their greed. The countries now under financial stress should tell the banksters to stick it. Then issue international arrest warrants for the crooks that sold them such worthless paper.
Of course it was all “legal” because our corrupt politicians refuse to clamp down out their biggest contributors.
Vote OUT each and every incumbent, regardless of party. Maybe we can get some honesty back in government and return the country to the people instead of the special interests that are robbing the whole world blind on a daily basis.

#10

I am sure we in America will be effected if things keep going the way they are in Europe. I am very sorry and sad to see what American greed has done to the world economies. I am afraid soon we will have the big companies wearing the crowns and running the nation in the name of democracy. I am amazed at the Americans compliance with this situation. I see very few people objecting to the companies and Bush government’ misuse of the power. The previous economy viz Mr. Green Span said that he made a mistake. The people and the new government let him walk away with his millions. I am not only mad with the banker I am also very mad with Green SPAM. It seems that the American people are willing and quietly taking the hardship.
Kanta Bhagat

#9

This whole banking/stock market mess is based on greed. Until these greedy SOB are prosecuted and put in jail for a long time, this type of greed will never end.

#8

The Americans have destroyed the economies of Europe and must now commit to purchasing 500 billion euros worth of manufactured goods from the EU.

If the Americans refuse then they should be immediately dropped as a trading partner.

The Americans dumped their toxic debt and securities on unsuspecting Europeans. The Americans must make right what they made wrong.

#7

Of course I do. The Euros have to start some kind of stimulus programes like what the USA and China
did for their economies.

#6

The Euro and Dollar are like two heavy weight boxers who are only able to stand by holding onto the other. Neither is strong enough on their own!

#5

All people of every nation are connected. No nation is able to live isolated from another any longer. We truly share a global economy. Europe, Asia, Africa, etc. — we all affect each other.

#4

There is no real recovery. The Federal Reserve, a private bank, has pumped trillions of dollars to re-inflate the stock market bubble. There is no real wealth in the stock market and anyone that puts their money in the “Band of Thieves” that is the Stock Market is a sucker. Only the politically connected insiders have the government guarantee after the market is busted out by the crooks. Every market is manipulated and that being said, the only item I would insure my money with is precious metals. When you hold gold you have real money with no counter-party risk. At least the gold market is manipulated to keep the price down.

#3

Possibly. The world is so interconnected now days, that it could.

#2

What recovery???? The big boys making money is not a recovery. We have massive unemployment, with more manufacturing moving out of the country everyday. The government saying the recesion is over doesn’t make it over. We have moved into a depression, but it will be several terrible years before they admit it. The US caused the problem in Europe, their only hope is to cut all business ties with the US and try to cope. Gee, aren’t we lucky that after the last great depression, the government “fixed” it and said it could never happen again. Give me some more lip service and make me feel better.

#1

I don’t think it will slow our recovery here in the US. Remember that the mess started here with crooks on Wall Street viz Bankers and Investment houses. What I think will slow or eliminate our economic recovery is for Obama to keep dilly dolling with this and that with current politicians. It will take business, finance and government to get the US rolling again. The world at large including the US has turned to immorality as a standing order of the day. Here in the US we use to place value in our country with patriotism and dedication to the principles which founded this Nation. Now we have a blank blank multi cultural society with zero American values. When people come to American they should consider adopting our founding principles in stead of bringing those on board from the countries they left. If those countries were so great then they should have stayed there. I guess what I am saying is – until we get some old time morals and dedication to our founding principles – no matter what happens in Europe or elsewhere – it won’t make a dimes worth of difference. I have long said that terrorism is not America’s real enemy – it’s erosion of our morals. Jim @ USA

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