As Tuesday arrives, economic turmoil is present around the globe. Chinese markets are sliding faster than expected, raising alarms around the world. Japanese markets continue their downward trend. The U.S. dollar has made gains, amidst the troubles within the European Union and Asian downturn. Moody's has said it will now revisit the credit ratings of many EU contries because it is not satisfied with the current EU bailout package.
Problem is, the European Union is asking countries that are doing well to invest their safety nets into countries with massive problems. A return won't be possible for many years to come. The EU is also asking countries that are already having troubles, but on their way of correcting them, to spend their funds that would lead them to stability instead on the EU bailout.
The reason Moody's is saying that they will be revisiting the credit ratings is because they dont believe the bailout package is enough to prevent economic disasters in a few of the EU countries. These countries that are not doing well, but can save themselves, do not want to donate to a bigger bailout package. Germany, a country that has had to sacrifice much in last couple years to be well off, finds it insulting that the bulk of bailing out will be placed on them. Why should they have to bailout countries that did not make the same sacrifices as them during the same time-frame.
This is a bit of a pickle. A bigger bailout package needed to save the complete EU, but members of the EU are not able to safely carry the burden. This is why Chinese markets are sliding faster than expected. I believe there could be a global depression about June 17, 2012. Please visit my sponsors.:-)
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