
The global finance and real estate markets are simple creatures. They really are. They are either driven by fear or greed. There is usually no middle ground. Either people are rushing for the exits or they are rushing to get in. Considering this momentum tendency, it is no surprise that the price of oil crashed like it did. It seems that even though all the downward pressure on oil has been around for a while (except the OPEC decision to keep oil volume constant), the pressure didn’t succeed in crashing oil. Only when speculative sentiment turned against oil did it see a crash in value. Keep this in mind when looking at Europe’s current situation. It appears that Europe isn’t looking very good right now. Except for a few bright spots, the Eurozone’s economic performance and GDP growth have a lot to be desired. Indeed, deflation has already kicked in at certain spots in the Eurozone map. The euro is crashing against the dollar and other currencies and it is increasingly beginning to look like Europe will be having a long economic winter ahead of it. What’s there to get excited about?
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