I hate that “R” word, but here we go—recession.
Don’t worry too much about the economic recovery in the U.S.; the real threat, as I have said on many occasions, will be the inevitable deterioration of the eurozone. What happens in the eurozone will have a domino effect on the rest of the industrialized and emerging markets worldwide.
Credit ratings agency Standard & Poor’s lowered its growth forecasts for the eurozone and suggested that the findings “paint a bleak picture” for the region. This shouldn’t be a surprise to you; I have long been bearish on the eurozone despite the bailouts and bond buying.
Standard & Poor’s estimates the eurozone will see its GDP growth contract by 0.8% this year, down from the previous -0.7%, followed by no growth in 2013, versus the previous estimate of 0.3% growth.
Spain and Italy were highlighted as the trouble regions. Spain will see its economy contract 1.4% in 2013. The country is working on austerity measures that are expected to be int
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