Forces Impacting the American Economy – Part 2
February 3rd, 2012 at 12:44 pm | Type:
Author: Ned Massie | No Comments
From our perspective there are six strong forces, three negative and three positive, that in combination predict the American economy in 2012. In this series we are looking at each of the forces individually, both negative and positive. Here is negative force number 2:
Negative Force II – Europe. Although they are currently financially stronger than the European banks, anyone who believes that our American banks are not at risk to the potential contagion of European economic distress is not really paying attention. Money today moves at the speed of a single global electronic market.
It is our opinion that Chairman Ben Bernanke has been brilliant during this economic crisis, especially when compared to Mr. Trichet of the ECB (European Central Bank). While the former ECB Chairman often lectured Dr. Bernanke, as a result of Trichet’s bad decisions, Europe is headed back into recession while the U.S. is in recovery.
Wondering how deep a recession Europe will experience means Europe is an economic negative force. In our global economy, the economic water is always trying to find its equilibrium point.
The fact is that the European economy is or will be in recession in 2012. The question is… will the European Recession of 2012 be deep enough to cause the U.S. to go into recession as well?
We will give our answer at the end of this series.
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Filed under : Market Perspective, Ned Massie
