Europe in Crisis

On 01/14/2012, in Economics, by Jordan Wilson

Europe is undergoing a financial crisis.

For companies, individuals, and investors, this is a huge issue.

How will it play out? Who will suffer? Any resolution scenario will not be pain free. 

What will happen to the Euro and European Union? What will be the impact on non-European countries? Regardless of where you live, you will feel residual effects.

How can one best protect their savings? Will there be investment opportunities that result?

How the financial issues play out and how individuals protect themselves will play a significant role in future lifestyle. This is why it is imperative that people take the time to understand what is happening.

Without knowing what is going on and why, it is impossible to take measures to safeguard your wealth and lifestyle.

What Are Europe’s Options?

Print more money and devalue future purchasing power. Your money will be worth less and goods will cost more. Retirement will become much more expensive than planned.

Raise interest rates to attract lenders and costs for individual and corporate debt holders increase, reducing their disposable income. This means less money to spend on one’s life. And less money being spent in the local markets, resulting in poor economic growth and less jobs.

Introduce realistic spending cuts and governments will have to reduce services and/or shrink social welfare programs. Individuals will have to pay for previously “free” services such as garbage collection, road maintenance, fire and police services. Or there may be less assistance provided by government in health care, education, retirement payments, etc.

And so on. The options are many, but painful to the people.

Any scenario is going to result in higher costs for Europeans and impact other countries.

How Did Europe Reach This Point?

I have written some on the European crisis. The “Related Posts” in the sidebar offer some thoughts on the subject.

But it is a lengthy topic.

Fortunately, The Wall Street Journal created a very good documentary. It provides a synopsis on “the origins of Europe’s debt crisis and why it spread with such ferocity to engulf much of the continent and threaten the entire world.”

Long at 25 minutes. But well worth your time to understand how Europe got to this point.

1 Response » to “Europe in Crisis”

  1. rwa kulszowa says:

    It has long been looking for an article on Europe in Crisis | Personal Wealth Management , thanks for the article.

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