Germans are extremely upset because they would be the one to bailout the European countries that fail to repay their debts.

 

February 26, 2010 (Hamsayeh.Net) - US and European stock markets experienced further falls due to concerns over Greece’s rising debt issues and latest unemployment figures.

 

Western financial markets continue on their feeble economic course while the Eastern economies seem to be in a lot better shape. In the US the Dow fell 53.13, or 0.5 percent, to 10,321.03, the broader Standard & Poor's 500 index slipped 2.30, or 0.2 percent, to 1,102.94 and the Nasdaq composite index fell 1.68, or 0.1 percent, to 2,234.22. Britain's FTSE 100 fell 1.2 percent, Germany's DAX index dropped 1.5 percent, and France's CAC-40 fell 2 percent. Japan's Nikkei stock average fell 1 percent.

 

Many investors fear Greece’s mounting debt problems to spill over to other countries in Europe with Spain standing next in line. Madrid already proposed implementing extreme austerity measures. The government of Luis Zapatero announced plans to cut wages and take money from pensioners.

 

The list goes on. Germans are extremely upset because they would be the one to bailout the European countries that fail to repay their debts. They expect a domino effect to take place within the next few months starting from Greece knocking all the way to Germany and even the US.

 

Last year, the US and European governments had injected massive economic incentives into their economies using public money. They promised a quick economy revival within short orders, but so far there are more unemployment, bankruptcies and closures. People in US continue to lose their homes at record levels.

 

Latest data in the US reveal first-time claims for unemployment insurance rose by 22,000 whereas some analysts had predicted a drop in claims. Leading economists warn of impending Western/global economic collapse if the current state of affairs continues unimpeded.