Greek politics bring perils to American economy

It’s strange but true that Greek politics still seem to keep connections with the American economy. In fact, this has perplexed plenty of American economic experts and has even affected the interest rates, money market accounts, savings accounts and even CD rates. Although many Americans are not having issues with their personal finances, Greek politics have brought unpleasant aftereffects in the American economy.

As per history says, there were fears that Greece might come under the category of defaulters for not able to pay debts in time. The European leaders settled a complicated bailout package with the prime minister of Greece, Papandreou. The former wanted Papandreou to grant the package officially by a national referendum. Unfortunately, Papandreou stepped back and further lost confidence of the parliament that led to his resignation.

All these events have cast a tremendous impact in the daily lives of the Greeks. In fact, this has strongly affected the economic conditions of the Euro-zone nations and has brought plenty of investors in troubles. The economic turmoil of Greece has even brought down the present interest rates in the majority of the US banks by a good percentage. Now, some bemused Americans are still questioning as to how Greek politics can have a direct impact on the American economy. Let’s check:

–          A huge portion of assistance for the American economy comes from external sources. In other words, international trade is the bread and butter that can actually strengthen the economic conditions of the United States. However, this might result in failure if the demands fall short on the domestic front.

–          Now, a rising deterioration in the European economic standards will certainly affect all saving accounts along with other deposits. This might happen since the interest rates might have lesser probabilities to soar till the US economy gets bettered.

–          Owing to the falling interest rates in the United States, the investors having fears regarding European defaulting stories will certainly prefer to jump to the U.S. Treasury securities. In fact, the higher the demand of the US bonds, the greater the possibilities of the interest rates to go down.

Although normal savings accounts remain miles from the trickeries of worldwide politics and finance, even a slightest touch of foreign influence can heavily affect the personal finances of plenty of businessmen and investors. Well, new plans and strategies are on their ways to step in the American economy so that no external influence can prove harmful.