US Futures down on Greece is Spain next?
Dow Live Report: The Greek financial scandal is, as expected, strating to affect markets outside EU. Before opening, the Dow futures are down nearly 50 points. Asia also showed red numbers. Currently, the Euro is under self-inflicted pressure and depending upon how stable the other members are (or not) repercussions may have a substantial effect on global economy.
Spain, Portugal and possibly Italy show signs of turmoil with Spanish and Portugese with interest rates surging. The European Union is currently a mottley group with member countries ranging from wealthy stable and well-managed, to wealthy slipping and mismanaged, to poor sinking and mismanaged. The second group, argualbly contains a couple of the bigger GNP countries and what happens there may go so far as having an effect on the very fabric of the EU as a concept.
The last group with the newcomers and mainly ex-redblock countries have a much smaller piece of the EU GNP cake but the arguments that this therefore makes them a lesser threat is faulty because they have more complex issues inherited from their former status. GNP might not be as big but the population mass is just as big as the other areas currently in the headlines. Additionally, some of the east and central auropean countries lack the transparency needed to identify problems at hand.
Solid members Spain and Portugal are now also starting to get some news headlines but Italy is still seems to be off the problematic radar. If Greece could play the shadow game, so can others. Perhaps this fear is unfounded but if the EU suffers severe blows from several larger countries moving towards the abbyss (already happening) then a cautionary flag is perhaps not wrong.
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