One false move in Europe could set off global chain reaction

Washington Post ^ | Monday, May 24, 2010 | By Howard Schneider and Neil Irwin Washington Post Staff Writer

[Ernest_at_the_Beach]

If the trouble starts -- and it remains an "if" -- the trigger may well be obscure to the concerns of most Americans: a missed budget projection by the Spanish government, the failure of Greece to hit a deficit-reduction target, a drop in Ireland's economic output.

But the knife-edge psychology currently governing global markets has put the future of the U.S. economic recovery in the hands of politicians in an assortment of European capitals. If one or more fail to make the expected progress on cutting budgets, restructuring economies or boosting growth, it could drain confidence in a broad and unsettling way. Credit markets worldwide could lock up and throw the global economy back into recession.

For the average American, that seemingly distant sequence of events could translate into another hit on the 401(k) plan, a lost factory shift if exports to Europe decline and another shock to the banking system that might make it harder to borrow.

"If what happened in Greece were to happen in a large country, it could fundamentally mark our times," Angelos Pangratis, head of the European Union delegation to the United States, said Friday after a panel discussion on the crisis in Greece sponsored by the Greater Washington Board of Trade.

[counterpunch]

Why should the European capitols tighten their belts when the US administration is living larger than ever?
America sets the example in the world, and we’ve been setting a terrible one these last couple years.

[Ernest_at_the_Beach]

The New York Times is becoming increasingly accurate of late. What’s up with that?

Rupert is aiming to give them some competition...from a local edition of his new toy ...the WSJ.

[99Floyd]

“would love to see that graph”

http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html

[fire4effect]

Thank god the american gov pensions are safe...would not want any of them greek-style riots here

[Ernest_at_the_Beach]

If China slows down the Global economy slows down....

[stuck_in_new_orleans]

thanks

[Ernest_at_the_Beach]

Why are they safe?

[Ernest_at_the_Beach]

Thanks.

[jonrick46]

"Correct. It’s called socialism."

Socialim in Europe has reached its tipping point. It is showing the world that it is a economic model that is unsustainable and susceptible to collapse. Hopefully this will be a teachable moment in history that will tell people that socialism is not the road to go down.

[grey_whiskers]

"If what happened in Greece were to happen in a large country, it could fundamentally mark our times,"[said] Angelos Pangratis [snip]

And there you have the problem with Greece.

Look at his name.

They think everything's free.

Cheers!

[caww]

I hear China is beginning to just that....

[caww]

I hear China is beginning to just that....

[grey_whiskers]

Weren't they bought by Carlos Slim...?

Hint: apparently a real capitalist...

Cheers!

[gleeaikin]

Great graphic. I wish they had put the population figures in for the countries to give a better per person debt perspective.

[Ernest_at_the_Beach]

Asian Shares Mostly Higher; Chinese Property Firms Gain

************************************EXCERPT************************************

May 24, 2010, 12:21 a.m. EDT

By Colin Ng

(Adds information, quotes, updates/adds market levels)

SINGAPORE (MarketWatch) -- After a limp start, Asian stock markets turned mostly higher on Monday, with Chinese property developers in Hong Kong and the mainland surging on hopes that Beijing may go slow on future tightening measures to curb the property market.

[Ernest_at_the_Beach]

Nite all....

[Myrddin]

Hopefully this will be a teachable moment in history that will tell people that socialism is not the road to go down.

Don't plan on it. I had a friend in Wales who didn't like the harsh words I had to offer about the economic failure of Cadbury. I pressed the issue by asking if the government should impose a Cadbury tax to keep them alive in spite of not being competitive in the market. She railed at the idea that you have to be economically viable to survive. She proclaimed herself a "proud socialist". It went downhill from there. I had to hit the "remove" link on the Facebook friends list to quash the acrimonious interaction. Too bad. I really wanted to improve my linguistic proficiency in Welsh, but so many of the Welsh are steeped in the socialism that pervades the U.K. It's gasoline and a match when I watch that in play.

[99Floyd]

Greece looks small compaired to 3 others.

[StopObama2012]

“The New York Times is becoming increasingly accurate of late. What’s up with that?”

YES, what IS up with that? Are things SO BAD that even the NYT has started admitting Socialism is BS?

I don’t get it. Maybe Carlos Slim, the mexican who loaned the NYT ___ million for ___ percent of their company at 14% interest called a meeting and said, “Hey. Lie less. Nobody is buying your papers.”

I can’t think of any other explanation.

[gunsequalfreedom]

The New York Times is becoming increasingly accurate of late. What’s up with that?

Decided they needed to make money and emulating Pravda was not cutting it?