The USA is still suffering from high unemployment rates and recession - and no solution yet is on sight. Europe and the Euro is grappling with the Greek debts – and nothing on the horizons offers comfort; and now the big one: Italy is on brink.
“The ultimate fear is that Italy — the third-largest economy in the Eurozone — might need an international bailout to handle its enormous $2.6 trillion debt.
That is too expensive for Europe to handle, and could trigger a default that would break up the 17-nation Eurozone and drag down the global economy.
On the bond markets, the yield on Italy's 10-year bonds jumped another 0.33 of a percentage point yesterday to 6.58 per cent, its highest level since the euro was established in 1999. That is drawing uncomfortably near the 7 per cent threshold that forced both Ireland and Portugal to accept bailouts.”
Now what would be its impact to the world economy? We an only speculate.
As always the prudent investors would hide a huge chunk of their assets on gold and other metals – the reliable currency to hold in times like these.
Hold on tight everyone - it is going to be a bumpy ride in 2012!