Friday, August 1, 2008

European Countries are financially in a danger position

The struggling Economies of Greece, Iceland, Portugal and Spain foretells a big impending recession and deflationary situation in the coming years in most of the Europeon Countries. Already Worldwide all the Stock Markets are in bull run since 2008. Europeon Countries too is in bull run. But the Stock Indices which is a barometer of the Economy is not moving much.

Many Europeon Countries Indices have not crossed their 2000 year highs. This indicates, despite a rally which moved past 2000 highs in all World Indices, the Europeon Indices are looking weaker. Any bull market has to be followed by a bear market. If the rally in world indices followed by a bear market, then the weaker Europeon Markets are likely to decline fast in coming months.

If Stock Market Indices are taken as yard stick, then the Europeon Economies have not grown as their Asian Counterparts. Same is the case of North American Economies. So an impending Bear Market in Stocks could contract the already lagging Europeon Economies.

If Europeon Economies are affected, it will snowball into a big problem for the entire world. Is it possible for this to not happen. No, the bull market and bear market cycle will surely take its toll.

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