The problem is that the eurozone financial crisis does not only consist of the massive debt loans that have impacted Greece, Spain, Ireland, Portugal, and Italy; it’s also the threat of another recession in 2013.
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New York, NY (PRWEB) November 22, 2012
In a recent Profit Confidential article, contributor and financial expert George Leong reports that the eurozone recently hit record high unemployment rates, standing at a record 11.6% in September. He notes that while about a quarter of Spain’s people are out of work, Greece’s unemployment stands at 23.1%, Portugal stands at 15.7%, Ireland at 14.9%, and Italy at 10.7%. (Source: Thomson Reuters, last accessed November 7, 2012.) But according to Leong, this is only one part of a larger problem that suggests the eurozone’s financial crisis could worsen into 2013.
“The problem is that the eurozone financial crisis does not only consist of the massive debt loans that have impacted Greece, Spain, Ireland, Portugal, and Italy; it’s also the threat of another recession in 2013,” says Leong. “Already, six of the 17 eurozone countries are in a recession.”
In the article “Reminder: Eurozone Has Its Own Fiscal Cliff,” Leong notes that Greece is still trying to pass its own austerity plan in order to receive another 31.5 billion euros in emergency funds or risk the real possibility of defaulting on its loan payments.
Leong states that, for Greece, “Deep budget cuts are the problem as they are occurring at a time of fiscal confusion, massive unemployment, and a dead economy. The deep cuts will hurt the country more in the short term, but they are needed to help Greece become a contributing member of the eurozone. It could take decades.”
Leong also reports that, according to Spain’s central bank, the country could see its economy contract by a worse-than-expected 1.5% in 2013.
Leong notes that the financial mess is now also impacting the eurozone’s two main pillars, France and Germany.
“France is finding things are getting more difficult as the eurozone tries to dig itself out of its financial mess,” says the Profit Confidential expert. “There is also the fear that Germany’s economy could stall, as the country’s industrial output contracted by 1.8% in October. If Germany falls, the eurozone will fall.”
Leong concludes, “It will take years to fix the eurozone, and if the economies of China and Japan worsen, the situation could get even worse.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.