Europe’s debt and economic crisis isn’t exactly the stuff of exciting headlines. But here’s the problem: what happens in Europe does not stay in Europe.
The EU is the largest economic entity on the planet — home to about 500 million and a GDP of some $17 trillion.It’s a major market for US companies like Ford, General Electric, Coca-Cola and plenty of others who sell their products there. It’s also critical to the export-dependent economies of China, Russia and others around the world.
According to the OECD and scads of other increasingly worried economists, the euro crisis represents the biggest risk to the global economy. Most worrying, Europe’s sovereign debt woes are a grave risk to the global financial system as big banks everywhere hold European debt.