American Economy Looks Uncertain With European Financial Problems Looming in 2012

As 2012 has arrived, many have contemplated what the New Year has to hold. Europe has gone through a financial downturn in 2011 and financial market research predicts that it won’t get better in 2012. Europe is expected to see bad economic performance throughout the coming year. With predictions for Europe looking so dismal, many are wondering what to expect from the American economy in 2012. Will these severe problems in Europe end up having an impact on the American economy?

 

It’s important to understand that Europe actually accounts for about ¼ of global trade. This means that the economy of the entire world, and that of the United States, will no doubt be influenced by the problems in Europe. The United States looks to Europe as one of the biggest trading partners. Across Europe, secondary markets are held by some of the biggest companies within the United States. Included in these companies are GE, Phillip Morris, and Ford. These particular companies have a huge vulnerability as financial problems get worse in Europe.

 

Quite a few financial analysts predict that 2012 only has more problems to bring for Europe. A depression is even likely if Europe continues down the path it is on right now. America and the rest of the world would end up experiencing a recession as well according to financial market research.

 

At this point, the United States cannot afford to suffer through more financial problems. Some feel that the United States is still going through a recession and the markets are still quite volatile too. More financial problems in Europe will only end up causing more problems for the United States financially. The world today is interconnected financially, which means that everyone will feel the negative financial events that occur in Europe. Further financial problems may crop up as time goes by. If the economy was stronger in America, this would not hurt as much. Since American already is dealing with financial issues that the current policies have not brought about the needed recovery, this may be devastating for the country.

 

While Europe may be going through tough economic times, America still may end up seeing a bit of growth in the New Year. Many financial analysts currently hope that the financial situation will stabilize in Europe, which will lead to slow growth and minimal gains, which are much better than another recession. 

 

 

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