Debt Crisis

A debt crisis occurs when a country is unable to repay its loans. Because it is overarching, a debt crisis is indicative of the overall heath of the national economy, international loans, and budgeting. When a country is faced with a debt crisis, it cannot pay off its financial obligations and must seek out assistance.

The United States faced a debt crisis on the heels of the housing market collapse and overall weakening economy. In December 2007, the U.S. entered into the Great Recession—and it lasted for 18 months. Over that time, the economy ground to a halt; businesses and individuals began to default on loans and banks saw their balance sheets shrink. To stave off further economic shock, banks made it more difficult to borrow, as cutting off liquidity means businesses cannot invest in growth and individuals cannot consumer.

To stave off an all-out economic collapse, the Federal Reserve stepped in with its first of three rounds of quantitative easing in November 2008. Since that time, the Federal Reserve has printed over $3.0 trillion and the U.S. national debt has soared from roughly $9.0 trillion to $18.0 trillion. The U.S. continues to run a budget deficit and does not expect to run a surplus until 2024; this means the U.S. debt crisis will not be under control for another decade.

Canadian Dollar Forecast 2016: Could the Loonie Hit $0.60?

By Monday, October 5, 2015
Canadian Dollar Forecast 2016CAD/USD Exchange Rate: Canadian Dollar Forecast Bearish in 2016 Although the Canadian dollar was virtually on par with the U.S. dollar just two years ago, a handful of events have decimated the loonie since. Low commodity prices are threatening to crush the Canadian dollar as the currency was supposed to regain its footing. For many .

EURO STOXX 50: Here’s Why European Stocks Could Break Out

By Friday, September 18, 2015
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Market Indices Down After Fears of Greek Contagion

By Wednesday, July 8, 2015
S&P 500 TumblesWall Street opened lower on Wednesday, July 8, on worries over Chinese financial instability and Greece’s debt crisis remaining unsolved. The main Chinese index, the Shanghai Composite, plunged nearly 30% from mid-June. On Wednesday, the Shanghai Index dropped by 6.75%. Trading on nearly half of every stock listed was halted. .

S&P 500 Opens Higher as Greece Talks Resume

By Tuesday, July 7, 2015
S&P 500 Opens HigherWall Street opened flat on Tuesday, July 7th, as talks between Greece and its creditors resumed. The U.S. trade deficit widened in May, reflecting concerns over weak global demand. European stocks continue to slide while the euro hit a five-week low against the dollar. In China, the stock market fell again despite the emergency measures.

S&P 500 Plunges 13 Points Sharply Down on Greece Debt Crisis

By Monday, July 6, 2015
Greece Debt CrisisWall Street opened sharply lower on Monday July 6, 2015, as Greek people rejected the bailout package by creditors on Sunday, putting the euro on edge. European stock markets plunged as Greece’s exit from the eurozone seems to be likely. After Greece overwhelmingly voted against conditions for a rescue package on Sunday’s referendum,.

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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