Now that Greece’s election has come and gone, what are the residual implications for the rest of the global economy? The E.U may be breathing a sigh of relief in the face of crisis averted, but European insecurities continue to be a main concern taking centre stage at this week’s G-20 Summit.
Canadian bond yields are pointing south once again, and 5 year fixed mortgage rates have dropped to the 2.99 per cent as a result – the lowest since March of this year. What could the slide be attributed to? Well, the answer lies overseas – more specifically, Spain. As investors continue to turn away from euro zone markets, what do the implications hold for Canada?
Spain is the latest EU nation to be bailed out – to the tune of 100 billion Euros. While the news caused an increase in investor confidence, what are the implications of such a move for the European economy – and Canada’s as well? Is this a signal that Europe’s financial woes should be increasingly considered a “global problem”?
Most people are aware of the financial crisis in Europe and the determination to overcome the problems within countries like Greece, Ireland, Portugal, Spain and Italy. But what most do not realize is one of the biggest challenges facing Europe right now is the distortion to the natural flow of money.