Right now, one of the top American financial news headlines has nothing to do with America and everything to do with Europe. When our own country gets financially down, it often depends on Europe to help it up. The latest financial news headlines have Americans worried that Europe will fail, too. Concerned? You should be.
The financial news all over the world at the moment is about the ballooning cases of government debt. America is well-known for its massive government debt, but European countries are joining the game now, too. Recently, an article in Wall Street Journal revealed this disconcerting financial news. The article told how many European banks have large chunks of government debt.
As we’ve seen from our own situation, this makes for an unstable economy. When you can’t trust the banks, you can’t trust the economy. What does this financial news mean for American investors?
Many investors have responded to this financial news by putting their money in more conservative investments. Selling out of stocks and other unstable investments, they’ve opted for Treasurys and gold instead. This is safer for individual investors, but maybe not for the economy.
The latest financial news just goes to show how interconnected our world’s economy is today. When one country starts to fail, others are seriously at risk. It may be a while before investors recover from this financial news enough to take risks with their money. Until they do, businesses will have to keep scraping by to get capital. When things get better in Europe, they’ll also get better in the United States.
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