Kolman Ely P.C.
Employment
Law News:
Copyright KEPC 2011
Kolman Ely P.C.
Since 1991
BEWARE THE DOUBLE DIP RECESSION!
I have written before about the double dip recession in my articles on his website. Now the danger seems to be coming from outside of the United States. There has been much discussion about the problem with Greece and its need for funding from the Eurozone. Greece, however, is the least of Europe’s problems. Now it appears, most recently, that Germany is not able to raise money on its bond issue. This essentially means that there is insufficient confidence even in Europe’s most efficient and most successful European nation. Meanwhile, there are ongoing problems, with Portugal, Spain and Italy, which is Europe’s third largest economy and there’s not enough money in the Eurozone to bail Italy out. What all of this means is that ultimately, the Euro could start to disintegrate as a currency for the European Economic Community and with it, there could be defaults across the board. In other words, the bonds that were issued by countries like Spain, Portugal, and Italy might not be honored. It could be for that reason that the German bond issue simply did not get off the ground.The debt underlying the bond obligations reaches to places that we can only imagine. It is not just American banks that hold some of these toxic acids but other institutions, which are numerous and unnamed and they also could be subject to repercussions from a default. These defaults could cause the entire western world to dip into another recession. The effect on employment could be catastrophic. Hopefully, something will happen to prevent such a crisis but, if it does happen, the United States may be the best country able to weather such a storm.