Will European debt crisis sandbag U.S. economy?
Steve Chiotakis: With leaders in Europe trying to find their way out of an economic crisis, there continues to be concern about how a European recession could affect us here in the United States.
From Washington, Marketplace’s David Gura reports.
David Gura: The White House says European companies invested nearly $1.5 trillion in the U.S. last year. And trade between Europe and the U.S. tops $3.5 billion a day.
Alexei Monsarrat: I think we’re enormously vulnerable to what’s happening in Europe.
Alexei Monsarrat is with The Atlantic Council.
Monsarrat: A serious drop in demand from Europe. That’s going to have an impact on the U.S. economy. There’s no question about it.
Big U.S. banks do a lot of business in Europe, and big European banks are an important part of the banking system here.
Megan Greene is with Roubini Global Economics.
Megan Greene: If there’s a liquidity crunch and a credit crunch throughout Europe, that could easily spread to the rest of the world.
And right now, Monsarrat says, our hands are tied.
Monsarrat: There’s probably ways to mute some of the impacts, but there is just a basic trade and investment relationship there that means that, when Europe runs down, so do we.
In Washington, I’m David Gura for Marketplace.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?