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Currency News – Greek Default Necessary For Europe Debt Crisis To End?

Many people originally believed that smaller countries in the European Union would not have a large effect on the other members if they fell into financial turmoil. When Greece, Spain and Portugal ran into financial issues, many people didn’t really worry too much and thought they would be a quick fix.

But, as we now all know, this is anything but the case. These small nations have caused huge problems for the whole Eurozone due to the level of interconnection between their economies and their financial systems, and they have even affected the world as a whole. Until these small countries are taken care of, major progress can’t be made.

 

Dollar Continues To Fall, But Could A Turnaround Be Near?

The American Dollar continues to fall against most other currencies as expected, but this may not be a totally bad thing.

When global turmoil happens, investors try to find a safe haven to put their money. For the last little while, most people have been buying up the Swiss Franc, causing the SNB to intervene a few times and threaten a currency peg to keep things under control. But, if things keep on going like they are, the USD may be the next safe haven currency people put their money in.

The American economy is in very bad shape – there is no doubt about that. But, in terms of size and the chances of it making a full recovery, it is still far ahead many of the other countries in the world. It isn’t if the US will recover, it’s just when.

 

Pressure Mounting On France And Germany To Take Care Of Europe Debt Crisis

The Franco-German Summit is just getting wrapped up, and many other European countries are not happy with the progress that is being made. There is lots of talk and political games happening, but without any action, none of that really matters.

On Friday, Belgium joined Italy in calling for joint issued Euro bonds. From the start, Merkel has been a huge opponent of this, saying that it will lead countries to be less fiscally responsible in the future and put everyone at risk.

But, at this point, there aren’t really any other viable options. Germany and France are in good financial condition relatively speaking, so they are really in no hurry to get anything done. This is the wrong state of mind to have – for any progress to be made, they need to start working.

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