Eurozone waves are destine to send ripples throughout the
economy. With each passing day, Wall Street reacts negatively with each news feed. Worries that US Europe’s crisis could worsen and spread, forecasters have predicted both investors and consumers will be very conservative over the Holiday Season. Ordinary Americans making investments in 401K’s and small stock investments are steadily seeing there the balances shrink and feeling doom as they move towards retirement.
According to the Conference Board,
households are expected to spend an average of $497 on gifts this holiday season. Only 7 percent of consumers said they plan to spend more on U.S. Holiday gifts this year, while approximately 40 percent plan on spending less than last year. http://www.conference-board.org/press/pressdetail.cfm?pressid=4333
Afraid of what’s to come, stores like Wal-Mart and TOYRUS have brought back layaway in hopes boosting
Holiday revenue. Wal-Mart has begun to draw attention by posting its Black Friday specials days ahead of this Holiday season. Msn money gave a total of more than 60 stores which are attempting to cash in on early bird shoppers, another way to get ahead of consumer confidence.http://money.msn.com/shopping-deals/article.aspx?post=dfe1edaa-65ee-48a2-8b9c-c27c1abf98cf
Although most businesses have suffered during the weeks, the New York Times Article listing Companies such as McDonalds, Kraft Foods, Sara Lee Corp and Oracle to name are few doing well. http://abcnews.go.com/US/wireStory/us-companies-feeling-impact-european-crisis-14943671?page=2
Still the Eurozone continues to influence other sectors, such as banking. Sooverdebt.com surveyed more than 50 Lenders and found the concern of the Debt crisis affects how they do business. Banks have decided on not lending money or reducing the term of how long they will lend money. If the economic crisis in the Eurozone worsens, we may see the bankruptcy of multiple companies as they begin to struggle.
Banks worldwide are cutting lending and hoarding cash to create more cushion for potentially deep losses on their holdings of Greek, Italian and other government debt.
and overseas banks are keeping what is said to be trillions in reserves at the Federal Reserve. U.S.
economy as weak as it has been over the past few years, continues to see light growth. According to all sources read, until there is a Eurozone resolution within reach, the US and other economies could struggle for a long time to come. US