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Saturday, April 1, 2023

Banking crisis in the United States: investor fears of contagion plunge European stock markets

The banking crisis in the United States has triggered European stock markets, which can raise fears of contagion in the red. In the United States, the crisis came after the Americans accumulated debt to the banks, which is now less and which causes losses of imported goods.

The origin arose in the usury of interest, which reduced the value of the public debt accumulated by these banks the largest bank failure in the United States since 2008.

Concern about contagion also carried over into a volatile day on Wall Street. Banks First Public It led to the decline of the North American nations, with the collapse of which it overcame 65%.

The President of the United States of America, Joseph Bidenhe confirmed that the Federal Reserve will guarantee the deposits of all these financial matters: “All clients can rest assured, they will be safe. Money is guaranteed and they will have access to money today,” he promises.

In addition to providing customers with savings and investments, the Federal Reserve provides assistance 25,000 million cover liquidity problems that may put other banks in the region at risk in the near future.

Does this affect me?

The measures announced by the US President did not calm the issue Investor distrust in Europe. Shareholders who bet on the bank chose to sell their shares and the assets of the financial institutions were graded.

This behavior threatens to infect other entities in the country, but it is still too early to assess the scale of the disaster. It remains to be seen whether the fear is a temporary investment or a prelude to a new financial crisis.

What will happen next?

This is a great unknown;There is a real danger to the Spanish European banks? Some experts think not. They deny that the banks’ profits will make their payment in the next few years. “Many skeptical investors sell first, ask questions later,” says financial analyst XTB; Joaquin Robles. “Usually this type of uncertainty, fear or risk will encourage investors to sell their shares,” he adds.

The rest of the economy is somewhat worse. They warn of the difficulty of setting up federal aid. “An alternative from the devil”, according to statistics and economic analysis; John Ignatius Crespo. “The Federal Reserve either raises interest rates to control inflation, which worsens the banking crisis, or doesn’t raise them and then has to raise them because inflation could get out of control,” said laSexta.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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