18th Feburary 2010
Monetary tremors send shock waves to Europe and Wall Street

As the western nations continue to tread carefully amidst the delicate foundation of their financial structures, monetary tremors emerged in the last ten days as Europe’s PAUL VOLCKER – JEAN CLAUDE TRICHER the financial honcho of the European Union voiced his concern in regard to many European countries with unacceptable deficits with Greece and Portugal topping the list. One single warning alone from Mr Tricher immediately caused FTSE to drop by 113 points together with the robust Euro and European stock market all dipping to the lowest level since November 2010.
This is a clear indication how fragile the monetary situation remains as this European monetary tremor extended to Wall Street causing the stock market to fall significantly. The worrisome part of this situation is the possibility that these international shocks can easily kick-start another financial Tsunami which in turn brings about untold damage to a stumbling World economy.
One really wonders how difficult it will be for financial institutions around the world to deal with such a fragile system in light of the hefty deficits saddled by so many countries. Already, citizens around the world are so nervous and insecure about their future that the slightest sign of any unusual monetary signals are sufficient to freeze any new and justifiable expenditures which in turn places direct pressure on the consumer side of the economy.
On the other hand, if the leaders of the Western World can get their message across that caution and discipline in respect to money management is the way forward, then in the long term, we shall all emerge stronger and more equipped to deal with the unforeseeable challenges.