There’s no ignoring the European debt problems today. Real estate loan defaults are crippling a few Spanish banks, and the IMF has advised that
If this reminds you of the scramble here in the
And we should also recall that while consolidation helped mitigate some of the potential effects of the financial crisis, it wasn’t a smooth road. Even the strong banks eventually required billion in bailout money to keep them afloat.
So yes, history is repeating itself in
Of course there are differences.
Two years ago,
It seems clear to me that the EU needs to move quickly to aid
This is another opportunity for the EU to make a show of unity and strength. After it’s big show of announcing there is $1 trillion available to support the euro, it better step in quickly and without any quibbling.
Of course, even if the EU responds quickly, the bigger question of debt around the globe will remain.
So how does this affect the
But I would not expect stocks to get completely washed out. Nor would I expect economic growth to be greatly impacted.
One potentially interesting outcome concerns the
Yesterday, Chinese President Hu Jintao even agreed that
If you want more perspective on how investors should approach the European debt crisis, join me on Thursday June 4, at 6 pm for a special video investment conference called Profiting from Crisis in Europe.
Investors must be ready to act when volatility dominates the stock market. During this special Internet event, Profiting from Crisis in Europe, we’ll discuss how you can use the volatility we’re seeing right now to position yourself for market-beating gains in the years to come.
Profiting from Crisis in Europe is free to attend, you can sign up for this critical event HERE .