Market Review and Trends
Euro Crisis
By P-T Trader  •  July 17, 2011


The Euro Crisis has reentered the picture, and was the focus of the market last week. The ongoing riots, unemployment and rising prices are damaging to the frail state of the Greek economy. An evidence of this lies in the 2-year government bond yields, which started out at 4.5% in 2009, doubled in 2010 to 9.73% and further spiked to 26.65% in July 2011. The sky high bond yield reflects the state of distrust and low confidence in the Greek economy. The Euro-zone is separated into 2, between those giving money and those receiving.

Any man on the street will know that the crisis is bad, but the extend and implication is less clear. Firstly, the economic growth in the Euro zone in general is expected to be weak, with the PIIGS going into negative growth. The huge amount of funds committed by other Euro zone members ......
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By P-T Trader
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