It appears that the US financial crisis is spilling over to France. This week France had to rescue Franco-Belgian amidst fears concerning loans to local authorities. French economic analysts suggests that the French banks will remain strong since the banks are rarely used for investment purposes. It wouldn’t be surprising however, if something were to go horribly wrong and cause a domino effect of bank collapses if freak incidents like the incident with the French rogue trader were to happen again in an already fragile global economy.
Laura K.
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Yes indeed. The US financial crisis is causing ripples in financial economies from Europe to Asia. In fact President Sarkozy of France has called for a European summit to discuss the current global crisis with the hope that EU member states agree on a coordinated response in the form of a rescue or bail out plan. Germany has come out strong against this move and there are doubts as to whether the EU can raise the amount of money needed- 300bn Euros to stimulate the European economy. Unlike the US Congress however, I am optimistic that the leading EU economies (France, Britain, Germany, Italy, etc) would be willing to make concessions and find common ground in tackiling this financial crisis.
Jenai T.
Laura, I think you are absolutely right in assuming that somehting may easily go wrong. we do not live in the middle ages anymore and I am certain that AIG or even the Lehman Brothers had interests in France. Those bankrupcies certainly did not work wonders for the French economy
Andre.B.P.
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