Could the Financial System Soon Collapse?
As American and European stocks continue to fall, a financial collapse may be looming. If the ongoing debt crisis forces European countries to default on their debt or abandon the euro, the consequences will have a major impact throughout the world. Many signs point to a worsening economic situation in Europe. With radical leftists leading in some polls, Greece could become the first country to reject austerity measures and default on its debt. CBS News reported in mid-May that Greek citizens had withdrawn so much money from their accounts that many of the nation's banks were on the brink of collapse. However, Greece is not the only country at risk. Spain's economy also continues to weaken. BusinessWeek reported in late April that the country's unemployment rate was at an 18-year high of 24 percent. Economist Harry Dent recently appeared on CNBC television and predicted that Spain would default on its debt.