European Financial Woes Are Growing Worse

This week, 800,000 Spaniards throughout Spain took to the streets to protest further budget cuts forced on them by the European Central Bank, the International Monetary Fund and other major lenders, effectively shutting down the country. And worse budget cuts are to come to Spain, Europe's 4th largest economy, http://online.wsj.com/article/SB10001424052702303816504577313380512186086.html?mod=googlenews_wsj

Spain's unemployment rate is 22% (compared with the U.S. peak unemployment rate of 25% during the 1930's Great Depression) and its unemployment is growing, as people are desperate for work.

Meanwhile, the Netherlands, one of Europe's strongest economies, and a source for European bailout funds is suddenly seeing its economy stumble, slipping into Recession. The Euro "core" of Germany, Austria, Finland, the Netherlands and little Luxembourg are all under economic siege and it raises the question of where will such nations as Portugal, Ireland, Italy, Greece and Spain raise bailout money if not from them? http://online.wsj.com/article/SB10001424052702303816504577311264157790928.html?mod=googlenews_wsj

This is a time for all of us to be concerned and supportive of our European brethren. And make no mistake - if they stumble, so will the rest of us, for this is an increasingly small and interdependent world.

Dick