When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need… Read More
When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need to know… A tale of two regions The myth that Europe is one big economic zone is starting to come undone. France and Germany just reported notable increases in employment, while southern neighbors showed big spikes in unemployment. It wasn’t supposed to work that way. The decision to create an economic union and a common currency was expected to lead to balanced and mutually beneficial growth. Instead, the stronger countries are pulling away from the pack and the weaker countries have started to move into a self-reinforcing cycle of negative… Read More