Monday, June 14, 2010

Second Funding Squeeze?

European banks at risk of write-downs from the sovereign debt crisis face a funding squeeze that may depress earnings, curb lending and imperil economic recovery in the region.

As both The U.K. and Germany announced steps to pare spending, it's a signal for these two big European countries to lead another round of fiscal tightening. Germany targeted 19.1 billion Euro cut on the deficit in 2011 and 2012 respectively. If the tightening continues to expand, there is potential for a second crisis.

Liz Liu
Summer Analyst
Analyze Capital LLC

1 comment:

  1. Liz, PLease try to keep your posts shorter in the future.


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