Lombardi Publishing Corporations George Leong Warns that Eurozone Financial Crisis Could Have Serious Ramifications for America

New York, NY (PRWEB) November 14, 2012

Investment Contrarians, an e-letter of Lombardi Publishing Corporation, a 26-year-old consumer publisher that has served over one million customers in 141 countries, warns that the economic crisis in the eurozone is dire, with six countries already in recession. With the U.S. election over, attention has now turned back to the economic crisis in the eurozone, and the hugely negative impact it could have on the United States.

While some are optimistic that the eurozone financial crisis has turned the corner, says financial analyst George Leong, editor for Investment Contrarians, new evidence suggests otherwise. The latest information from the eurozone shows just how weak the region is, and how much damage the financial crisis has done to its economic union.

In a recent article, Leong notes, The doom and gloom on this side of the Atlantic is focused on the countrys pending fiscal cliff, but in Europe, its focused on the continents own financial crisis and how to escape it. There are six eurozone countries in a recession, with the whole region threatening to collapse into a recession in 2013. In fact, says Leong, we are seeing more cuts in GDP growth rates across the board for 2013.

The European Commission is predicting a gloomy outlook, with the eurozones GDP growth contracting to 0.4% this year, and growing a muted 0.1% in 2013. In 2013, the eurozone will experience across-the-board cuts in GDP. The reality is that GDP growth could be even worse, states Leong, should the eurozone fail to sufficiently recover.

But what is really worrisome is that the distress with the weak members of the eurozone is negatively impacting France and Germany, the only two strong pillars in the eurozone, Leong says.

The analyst adds: France is finding that things are getting more difficult as the eurozone tries to dig itself out of its financial mess. There is also the fear that Germany could stall, as the countrys industrial output contracted by 1.8% in October. Germanys Economy Ministry noted that the nation will experience weaker economic conditions over the winter period. Capital Economics suggested France and Germany will face another recession in 2013.

In the United Kingdom (U.K.), GDP growth was slashed to a mere 0.9% in 2013, reports Leong, down from the prior estimate calling for growth of 1.3%. The reality is that GDP growth could be even worse, should the eurozone fail to sufficiently recover.

Leong believes that what makes the slowing of GDP growth in the eurozone a significant concern is its negative impact on the non-eurozone countries, including the Asiatic countries, such as China and Japan, which have seen their GDP growth affected.

With output decreasing, and exports to other eurozone members declining, Germanys Economy Ministry stated that it doesnt believe Asian demand will be enough to counteract the weakness from the other eurozone members.

Leong points out: The Federal Reserve and the European Central Bank (ECB) continue to buy bonds to keep yields in the troubled countries from surging higher. But this is only a bandage solution; it is not a remedy. Leong believes things will get worse in Europe, and in the United States. A number of institutions in America have exposure to the eurozone. If a financial crisis were to break out, its impact on America would most likely be quite severe.

Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, and to get their popular Investment Contrarians e-letter sent to you daily, visit http://www.investmentcontrarians.com. Or, visit http://www.lombardipublishing.com/customer-service.html.

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