Follow up blog on Greece crisis

The news from Europe is getting worse day by day.
After Greece it was the turn of Portugal ratings getting degraded.
But the real worry came in the form of Spain.
Spain is considered to be heavyweight compared to Greece or Portugal.
The deterioration of Spain economy will have a major impact on the world economy compared to Greece.
There are some concerns on China's asset bubble but positive data are emerging from US economy.
The markets are falling daily. But the correction was much needed since the markets rallied heavily in recent months.
So the market initially used the bad news as an excuse for correction. But now the concerns are threatening the markets.
As of now , EU has agreed to bail out Greece but on condition that it will reduce the expenditure.
Many Greeks have been outraged by the measures, which slash salaries and pensions for civil servants and hike consumer taxes.

Hopefully
1. The austerity bill will get passed in Greece Parliament.
2. The crisis is limited only to Greece and Portugal.
3. Spain remains unaffected.

We need to wait and watch if economy is really recovering from the recession or the economy is
entering double recession dip. The likely scenario is that the worse is behind us.