The real problem here...if you think about this....is that the banks all have vast sums of money invested in Europe. If the Greece business really does go down the tubes, then there could be a huge significant loss coming for the banks. All JP Morgan was doing...was getting themselves into some “bets” and ensuring some marginal profits to balance their books. They guessed wrong, and they are still in line for the Greek failure.
If you note the currency exchange rate over the past month...it’s been showing a weaker Euro. Let’s say in six weeks that the Euro weakens another ten percent. That will really bring US investments down. It also makes European products cheaper to buy for the American public. American products will cost a heck of alot more.
All in all...I’d say by November that another economic recession will have been launched and it’s to have nothing to do with the American sector...just a reaction to the European sector.
I think that is an accurate assessment. (Think of how the Chinese feel holding dollars).