A Complex Recovery

Europe accounts for 29% of U.S. exports and 8% of U.S. revenues.That is why the Eurozone debt crisis is such a concern across the Atlantic.The domino effect is much on the minds of financial leaders in America.
Spain contributes 12% to the Eurozone economy,while Greece yields 3%.The fiscal problems in Spain are not as bad as in Greece,says Nariman Behravesh,Chief Economist at IHS Global Insight.Spain is in the second year of a recession,with 20% unemployment.The big question is,what are they reasonably gonna do?None of the countries has come up with a credible debt reduction program.A Greek default has to some extent been priced in the market,but a Spanish default could split up the Eurozone.That has not been priced in.We're talking about a multi-speed recovery,a "LUV" recovery,with Europe being the L;the U.S. being the U;and Asia being the V,in Mr.Behravesh's opinion.
Greek Prime Minister George Papandreou announced a second round of budget cuts yesterday.The first round prompted rioting.Without the promise of cuts,Greece would not receive aid from its neighbors or the International Monetary Fund.