A report recently conducted by the United Nations found that of 158 countries surveyed on levels of happiness, Greece, a country characterized by tranquil Mediterranean waters, easy living and strongly-rooted traditions, ranked near the bottom of the listing at a dismal 102nd place.
While this ranking would raise eyebrows any other year, when we consider the financial chaos that’s entrenched this country of late, it’s little surprise that Grecians don’t have much of an optimistic outlook.
As of May 2015, Greece maintains approximately 330 billion euros in debt, and its chances of defaulting on this debt grow increasingly likely with each Eurozone summit that passes. These meetings with potential bailout nations have primarily underscored the belief that additional bailout money isn’t the answer, and that Greece should instead face what’s being called a “Grexit” from the Eurozone.
At this point, Greece’s exit stage left seems highly likely, and while many Eurozone nations, even those who support Greece, believe an exit to be the best course of action for this struggling country (the European Central Bank is already preparing for its departure), others around the world identify some troubling potential consequences. Though the Economic Intelligence Unit believes there’s only a 40% chance that Greece will actually leave the Eurozone (no country has ever made an exit before, so the unknowns may be enough to keep Greece in tow), this likelihood is enough to make many financial experts around the world, including long-time money manager Dawn J Bennett, concerned about the impact it would have on the global economy.
Of the potential negative consequences, one of the most alarming is the potential for other European economies to be significantly impacted by Greece’s unstable economy, and for Greek creditors to suffer throughout Europe. Greece’s economy is relatively small, but if returning to the drachma sends economic repercussions throughout Europe, which it very well could, the U.S. will eventually feel those repercussions too in the form of lost jobs and European exports.
The global economy is already fragile, and though the U.S. is inclined to tout its own economic growth, as Bennett points out, the U.S. economy isn’t as strong as we’d like to think. Major corporations, including McDonald’s and Caterpillar, are experiencing long-term, unprecedented profit losses, and job growth in the U.S. has been sluggish and far below what analysts had previously predicted. Unemployment rates remain stagnant and more publicly traded companies in the U.S. are filing for bankruptcy than they were last year.
Even the U.S.’s own happiness ranking is reflective of its uncertain economic conditions, as the U.S. ranked 15th, behind Israel and Mexico. This tentative optimism echoes a previous consumer study which found job seekers to be only conservatively optimistic about their chances of securing a desirable job in the near future.
Whether or not Greece makes a “Grexit” from the Eurozone, the possibility of a destabilized global economy has put into perspective for many analysts like Bennett the real consequences of a global economic downturn. The U.S. may believe its economy to be infallible, but a “Grexit” may prove otherwise.
Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.
For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com
Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.
About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com
She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.
She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett firstname.lastname@example.org