How will a greek default affect the us

1,105 views

Published on

How Will a Greek default affect the United States? Would a Greek default affect US markets and economy? What is the effect of a Greek default on Germany and Europe? First of all let’s start overseas and consider the effect of a Greek default on Germany and the rest of Europe, then work our way back to the US.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,105
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

How will a greek default affect the us

  1. 1. How Will a Greekdefault affect the US
  2. 2. How Will a Greek default affect the US? Would a Greek default affect United States markets and economy?What is the effect of a Greek default on Germany and Europe? First of all let’s start overseas and consider the effect of a Greek default on Germany and the rest of Europe, then work our way back to the US.
  3. 3. If Greece defaults then it puts the European Central Bank in real trouble, as the European Central Bank is the owner of many of the Greek government issued bonds that will ultimately default.Among many of its functions the ECB is responsible for safeguarding and supporting the euro currency, so a Greek default would threaten the solvency of the euro currency.
  4. 4. Now let’s take a look at how a Greek default would and could affect Germany.Germany has the unfortunate responsibility of leading the charge in the Greek bailout. It has put up a lot of money and has convinced other countries in the European Union to do the same just to bail out Greece and also keep Greece in the European Union.
  5. 5. Bear in mind that many of the richer countries in the European Union are in favor of expelling Greece and any other country that threatens the solvency of the euro currency.So if Greece defaults then we can expect to see some financial hardship in Germany as well.
  6. 6. So how will a Greek default affect the United States?First off the United States is in the early stages of a very fragile and very slow economic recovery. A Greek default would have an effect on the United States economy by slowing down any economic recovery that is underway.
  7. 7.  In order for the United States economy to recover it needs the entire global market to at least maintain its current rate of growth.This is basic knowledge for buying European stocks for dummies. The impact of a Greek default on the euro would disrupt the global economy and as such it would hurt the United States economy.
  8. 8. The extent to which it would hurt the economy is somewhat unclear but everyone agrees that Europe is a faithful and friendly trading partner, and if they do well then we do well. So for now Greece is the next big thing, in terms of the global economy and we can see the effect of a Greek default on the rest of the world. Find out the Greek default effect on US here:http://stocksfordummies.us/

×