The En-Pro Blog

In order to navigate out of the recent global recession, most world governments increased spending and deficits, forcing some into unsustainable debt levels.

Last week, the currency, equity and commodity markets were fixated on the European debt crisis. Specifically, the epicenter – Greece, which has been living far beyond their means and there is major concern they will default on their issued bonds and global debt payments.

Greece’s financial books are a nightmare with deficit-to-GDP at four times more than most of the other euro-zone members. The government is dealing with a resistant public not receptive to their austerity measures. Being one of 16 countries using the euro currency, markets expected this would begin a chain reaction financial crisis similar to the Wall St. meltdown of Lehman Brothers in 2008. The other fiscal mischiefs include Portugal, Ireland and Spain. Spain is probably a greater concern because they represent 7% of the Euro-zone economy and Greece is small potatoes at less than 3%. A vague rescue plan was announced last Thursday by the European Union President restoring temporary confidence helping to boost the stock market and oil prices.

So what has this precedent sent to the other fiscal misfits? And how will this all affect North America oil prices? Check out the En-Pro Energy Report. Sign up by sending your email to: info@en-pro.com.