The European crisis was nearly peaking four weeks back when the entire global financial system was jolted and every stock market index was crashing to multi-month lows. But in the last few weeks slowly people seem to have started forgetting the hidden European financial mess.
The European system is continuing to be in deep trouble with Spain and Portugal getting downgraded once again in the last few days. And Spain is already talking of another round of steep spending cuts, as it fears that it may not pass the European Union plus IMF monthly test with the current level of measures.
That is bad news and the business confidence in Germany is also showing signs of going down. UK home prices are also set to go down further in the coming months as more seized homes would come in for distress sales. The government also is already on an austerity mode and that would only cut down the income levels of the citizens.
And US also might cut down on imports from the European zone in the coming months once it starts cutting the deficit.
The European crisis is definitely not over, and it may rear it’s ugly head anytime in the near future, so be alert.