There is a lot of talk about the European financial crisis and how it could become a contagion and end up causing trouble to the US financial structure. But with the US economy continuing to improve, I am one who believes that the financial crisis in Europe will not have a contagion effect on the US economy.
There are examples of times where financial crisis in other parts of the world had a minimal effect on the US financial system. For example, Russia's currency problems in 1998 devastated a hedge fund named Long Term Capital Management. But the rest of the system was able to circle the wagons and get back to growth. Also, the Asian financial crisis in 1997 was able to be handled by the financial community and the International Monetary Fund.
This is not to say that the US should not be prudent in its analysis of the current problems. They had many more bullets in the chamber than they do now to help. So the financial industry has to be very focused right now. It will take the best financial minds to be at their best to get us through these problems. But there are many indicators showing that the US financial health will still survive the problems in Europe.
This is not to say that the US should not be prudent in its analysis of the current problems. They had many more bullets in the chamber than they do now to help. So the financial industry has to be very focused right now. It will take the best financial minds to be at their best to get us through these problems. But there are many indicators showing that the US financial health will still survive the problems in Europe.
