European Economy

When Germany recently announced some underachieving economic numbers, it was a red flag for the eurozone and Europe. When the stronger of the two pillars in the eurozone (France being the other pillar) begins to show some fragility, you have to take a step back to evaluate the…

While cutting the growth outlook of the global economy, Chief Economist of the International Monetary Fund (IMF) Olivier Blanchard said yesterday, “…the main challenge is very much in Europe.” (Source: “IMF Cuts Global Growth Outlook as Europe Demand Urged,” Bloomberg, April 16, 2013.) Blanchard showed further concerns regarding…

It is absolutely critical that you evaluate all your holdings for risk. The U.S. stock market needs to correct, but the sovereign debt crisis in Europe and the euro currency together remain a festering powder keg. The real problem for the euro is the lack of leadership—in banking…

If you go to Europe and you find yourself in Holland (the Netherlands), you’ll likely fly through Schiphol Airport on the edge of Amsterdam. It’s one of the best airports in the world, in my humble opinion. When you go through security, you are treated like a paying…

There was another reminder on Monday morning that the eurozone continues to be in a financial mess. In an unprecedented move, Cyprus plans to tax bank deposits at 6.75% and 9.9% to raise US$7.6 billion in capital as part of the country’s bailout deal. (Source: Steinhauser, G., Stevis,…

Politicians in Cyprus are pushing for a government vote on a tax on all bank deposits in the country—6.75% on deposits up to 100,000 euros, and 9.9% on deposits above that amount. (Source: Wall Street Journal, March 18, 2013.) This step by one of the smallest nations in…

It seems the media has gone quiet about the eurozone credit crisis, as I don’t hear much about it these days in the mainstream news. Maybe they are relieved about the European Central Bank’s (ECB) announcement about its plan to do whatever it takes to save the eurozone—even…

I know most people are tired about hearing of the economic problems in the eurozone. But my readers need to be aware: a new perfect storm is brewing because of that situation. The credit crisis in the eurozone has already created enough troubles in the global economy, but…

There is no doubt now: the U.S. economy is being highly affected by the global economic slowdown. If you have been listening to financial gurus and the mainstream media saying, “We’ll be alright, we can weather the storm,” take their word at your own risk. To put things…

As we all know, the eurozone credit crisis has taken away any chance of economic growth in the global economy. Spain—the current epicenter of the credit crisis in the eurozone—has seen its credit rating downgraded to a credit rating of BBB- from BBB+ by the Standard and Poor’s…

With German Chancellor Angela Merkel visiting Greece this week, many eyes are turning back to this southern nation within the eurozone and wondering…has anything really been resolved? Since the financial crisis began in Greece, there have been many pundits discussing how best to avoid contagion to the rest…

The focus this past weekend was squarely on the Greek elections and whether the vote was one which would precipitate the exit of Greece from the European Union. The focus instead should have been on the fact that Greece will run out of money very soon and hence…

China may be heading for a hard landing. The country’s second-quarter gross domestic product (GDP) growth could falter to below an annualized seven percent should activity not pick up, according to the China Center for International Economic Exchanges. Of course, the crisis in Europe and the eurozone is…

Europe is an ocean away, but it’s literally in our backyard as far as the impact from its credit crisis and it doesn’t appear to be going away anytime soon. Greece can’t even elect a coalition government to deal with the tough austerity measures that the previous government…

Since 1945, Greek elections have swung back and forth between two parties, similar to the Republicans and the Democrats here in the U.S.—very predictable. With the Greek unemployment rate at a record 21.7% in February and youth unemployment at an alarming 54%, the elections in Greece held earlier…

The unemployment rate in the eurozone reached a 15-year high in March at 10.9%, up from the previous record set just a month earlier at 10.8% (source: The Guardian, May 2, 2012). This is the highest unemployment rate since the inception of the eurozone. March 2012 marks the…

In the recent months, we have been able to shift our focus away from the eurozone and concentrate on the economic renewal in the U.S. Yet, as I have been saying, you cannot forget the risk in the eurozone and Europe. GDP growth in the eurozone is muted…

When it comes to currency trading right now, there is one country’s currency that that has moved very substantially. You might be thinking that, with all of the turmoil in Europe, I would be referring to the euro, but I’m not. In fact, I’m talking about the Japanese…

This week, the European Central Bank (ECB) offered its second long-term refinancing operation (LTRO) to European banks to the tune of a staggering $712.2 billion. First, let’s make one thing clear, dear reader. When the Federal Reserve here in the U.S. instituted QE1 and QE2, the Fed printed…

There is no doubting that stocks have performed well for investors this year, especially in technology and small-cap stocks, which have advanced nearly 12% for investors. While the investor sentiment continues to be bullish and remains at its highest levels since March 2011, I’m also aware of the…