Greek Crisis Could Be Catalyst for Double-Dip Recession
Greece’s economic collapse may lead to a double-dip recession affecting not only Europe but the U.S. and the rest of the world as a result. In the past month alone, the Nasdaq has plummeted 8% while the S&P 500 has fallen 6% over the same period.
Economists are speculating that if Greece’s financial industry does collapse, other shaky EU economies in Portugal, Italy, Spain, and Ireland will follow suit, leading to a chain reaction throughout the European continent and eventually hitting Asia and the Americas as well. There is some fear that the summer of 2011 will be the beginning of an even deeper global recession than was experienced three years ago.
Meanwhile our debt ceiling is pushed higher, our debt grows deeper every second, and our government cannot agree on a budget that doesn’t run a deficit. If we are hit with another recession remotely comparable to the last one, I think it will be safe to say China has become the world’s sole economic superpower. Our leaders need to act and act now.