27 Sep, 2011
Europe replaces US as new source of financial crisis – People’s Daily Online
The collapse of the dominos will be spread to the entire world through investment institutions. The investors who made losses in Europe will sell off their sound assets to offset the losses, resulting in price drops in other commodity and monetary markets, such as gold and oil.
In a word, the global financial market has fallen into a frozen state again in the face of investor panic. The banks are unwilling to lend money, and investors refuse to invest. With increased credit risks, the real global borrowing rate has risen significantly. Even if the Federal Reserve and European Central Bank implement quantitative easing monetary policies, the global credit market will be unable to become active again.
via Europe replaces US as new source of financial crisis – People’s Daily Online.
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