Anti-Eurozone Movements Brewing in the Common Currency Region
Mark my words, if the eurozone falls apart, it could have dire consequences across the globe. The common currency region could be the source of the next financial crisis.
Before going into any details, we know our readers are not very interested in the eurozone, but there are a few developments that are worth keeping a close eye on. Problems in the eurozone could wipe out a lot wealth for American investors.
One thing that must be known is that there’s an anti-euro movement brewing in the common currency region.
For instance, just last weekend, there was an election in Italy, the third-biggest economic hub in the eurozone. A center-right political party gained a lot of popularity; the League got 18% of the votes. The leader of that party said regarding the euro that, “it’s a wrong currency and a wrong choice.” (Source: “Italy’s League boss says markets should not fear centre-right government,” CBC, March 5, 2018.)
Let’s get this straight: it’s not only in Italy where we have seen anti-euro and anti-eurozone movements brewing. Not too long ago, in France we saw something very similar. Marine Le Pen of the National Front gained a lot of popularity but didn’t win. We also saw similar sentiment in Spain, Portugal, and Greece.
Now Germany is the only country that’s keeping the euro and the eurozone together.
So, What’s Next?
You see, the eurozone is recovering from a massive debt crisis and economic downturn.
The European Central Bank (ECB) is doing everything and anything to keep the financial system in the region running smoothly and to make sure there’s economic growth. The ECB is keeping interest rates below zero and it’s still printing money.
Despite this, the banks in the region remain in bad shape and disliked by investors.
Look at the chart of Deutsche Bank AG (NYSE: DB), One of the biggest banks in Germany.
