Again, America needs to count on Asia. American stock prices at the end of last week encountered mega-instability once global markets were concerned that financial worries in the east may end up in the west, in particular Europe and America.
No country stands alone. It’s not just Asia and America/Europe. Right now, concerns have spread to Argentina and Brazil over potential Venezuelan currency devaluation. This could result in a huge crisis for the entire Latin American region.
But still it’s Asia that has the power to result in worldwide economic problems. Due to what’s been going on in the financial sphere in the eastern part of the region, huge instability could engulf US and European countries and even result in an abandonment of capitalism.
Further, if American lawmakers are unable to agree on necessary budgetary cuts, the country could end up encountering another credit downgrade. While there is fear of limited growth in Asia, there is the possibility that mining and energy companies could go into decline. One trader from London Capital Spreads said that it is likely markets will open lower due to Europe and America’s sovereign-debt concerns…