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Hi Bears. Could you explain to me why you believe that the problems with the EU economies will dwarf those of the U.S. I find this extremely hard to believe.

This will probably be true in certain EU nations that are hit the hardest by an economic slowdown at a time when their central bank refuses to lower interest rates to the level that we have them at here in the U.S.

However, I strongly believe that the recent weakness in the Euro was way over done and that citizens of EU countries may actually be better off than U.S. citizens in the long run as the will experience a lower rate of inflation that the United States will.

The current economic meltdown may cause some deflation at first, but I suspect that the student of the Great Depression who runs the Federal Reserve and the Wall Street veteran who runs the Treasury will attempt to flood the world with U.S. dollars to prevent deflation. Bernanke has spoken on this subject numerous times in the past, including his famous "drop money from helicopters" speech on the deflation problems that Japan has experienced.

Of course, this assumes that the European Union doesn't completely crumble as the weakest economies in it bail.

Deej
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