CONTACT US

Pennsylvania Office

P (610) 358-8942

F (610) 358-8943

Delaware Office

P (302) 449-0111

F (302) 449-1888

OUR LOCATIONS

51 Woodland Drive
Glen Mills, PA  19342


291A Carter Drive
Middletown, DE 19709

SOCIAL MEDIA

CONTACT US

Check the background of your financial professional on FINRA’s BrokerCheck.

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.

Andrew Wood, Dan Simon and Alison Slezak are Investment Advisor Representatives. Advisory services are offered through CoreCap Advisors, LLC., a Registered Investment Advisor. CoreCap Advisors, LLC and Daniel A. White & Associates, LLC are separate & unaffiliated entities. 

© 2018 Daniel A. White & Associates, LLC. All right reserved. Built by Atwood Sites.

Please reload

ARCHIVE

Please reload

BLOG TAGS

CATEGORIES

Ongoing European issues

April 22, 2014

I’ve touched on the volatile and worrying fragility of European markets in the past, pointing out what the dire implications might be for U.S. and global markets when the bill on Europe’s borrowing exuberance comes due. Anyone that has been paying attention to the headlines over the past few months probably wouldn’t be surprised to hear that, if anything, my concern is only increasing.
 

Greece and Cyprus remain in critical condition and on what is essentially economic life support, Ukraine and Turkey have experienced significant civil unrest, and all of this is happening in a region that remains burdened by some seemingly intractable structural imbalances. German Chancellor Angela Merkel recently pointed out that Europe has 7% of the world’s population, 25% of its output, and 50% of its social spending. That is not a recipe for long-term success. Remember: we are all connected. Any time there is turmoil—military, political, economic—in such a significant and influential part of the world—we’re all affected.
 

It’s amazing to think about, but the failure of a bank in Cyprus could potentially take down U.S. markets. I think this all goes back to the origins of the Euro itself, which gave countries like Greece, Spain and Italy the borrowing power of Germany. This enabled them to incur more debt than they should have been allowed to—and these same countries are dragging all of Europe down.
 

The creation of the Euro bound these economies together, but did not centralize fiscal decision-making enough to make the framework feasible for the long-haul. This underlying dysfunction is one of the reasons why the Eurozone crisis has taken longer to resolve than anyone expected, and why the likelihood of a major global-market-rattling default in a country like Italy or France is continuing to rise.

Share on Facebook
Share on Twitter
Please reload

CALL US TODAY!
PA OFFICE: (610) 358-8942
DE OFFICE: (302) 449-0111