Eurozone crisis has been an overwhelming issue for quite some time now. Investors and businessmen are not sure that the crisis is going to resolve very soon. The condition has led some of us on misconceptions. This is dangerous. This will lead you to wrong ways to react on the crisis. What are the misconceptions? Here are some of the most effectual ones.
All are Greece Problem
This is not only about Greece and their debt. Most people think that Greece is the main cause of the crisis. The fact is it is not. People also think that Greece is the only primary player on the crisis, and it is wrong as well. Italy, Spain and so many other countries are on financial distress and this is the fact. So don’t be fooled.
Crisis Will End Soon
Even though each country has their own policies and solutions to do, experts and people in charge believe that the crisis is not going to end very soon. They even predict that if we do not make appropriate financial and political movements, both fields will be shaking for more years. The progress is not very cheering, and this should be anticipated by everyone. It is not to end soon.
Europe is Too Rich to Bail
This is also wrong. Even though we all know that Euro is a union of several strong countries, most of them are interfacing very challenging condition right now. They are in big trouble now, and they do not have enough strength to handle things. So, it will take years before those countries can make adjustment and rise from the current condition, and no, Europe is not rich enough to bail.
US Isn’t Affected
This is wrong. Without us realizing it, the US and Europe are highly connected to each other. When European politicians make statements, they make change on market. Several US companies have market in Europe as well. So, when Eurozone crisis happens, US businesses are affected as well. This crisis already puts its nerves on everyone.
Now, as those issues and misconceptions are clarified, we should have better movements. We may need to make special portfolio, adjustment one, to offer to our investors. We may also need to rethink about our new investments before we make it and being preventive on it. Worse condition can be anticipated and you are totally in control to define your next condition.
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