Recession Watch: Is the Euro Headed for a Crash?
Today's Financial News - Posted August 7, 2008
“But while there seems to have been more or less a straight fight between the States and us (the UK) as to who actually plunges into a recession first, within the last few weeks another strong contender for this dubious prize has emerged. The eurozone now looks like it could get a dose of recession before either the U.S. or the UK.” — David Stevenson
Blogger’s note: So who’s calling the recession first? The U.S. and the UK have been in a straight heat in their race toward an official recession. The UK was the first to see the financial crisis topple a major bank, when Northern Rock’s inability to repay a government loan drove the country’s leaders to nationalize the bank in February. But the U.S. has lost much more purchasing power overseas in the last year as its currency slides.
But perhaps we should be looking elsewhere to find the first official recession results. David Stevenson of the UK’s MoneyWeek has some startling news to reveal. According to David, the economy that declares defeat against the credit crisis first could be the EU. Yep, the eurozone could soon see its economy nosedive into a recession, and its currency, which has flourished against the devalued dollar this year, could collapse under the weight of a massive sell off. Don’t believe me? Read on below to learn more.
by David Stevenson
Baltimore — (TFN): We’ve been more than a little downbeat on the outlook for most ‘developed’ economies for a good while now. So it’s been no great surprise to see that the rest of the financial pundits are finally coming round to the idea that the global economy is heading for trouble.
But while there seems to have been more or less a straight fight between the States and us (the UK) as to who actually plunges into a recession first, within the last few weeks another strong contender for this dubious prize has emerged. The eurozone now looks like it could get a dose of recession before either the U.S. or the UK.
That means the euro could well be about to fall off its perch and join the ever-lengthening list of the world’s ill currencies. That’d be good news for the dollar – and maybe even the pound… Read on to learn more.
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