Economic Growth Forecasts For Europe and US Are Reduced

This is some of the bad news about the crisis in the eurozone. The stock market ignored this information on rumors that leaders were considering more aggressive actions. The European banks are the weak spot. They have to write down the value of sovereign debt that they hold and they are being forced to increase their capital to asset ratios. This has resulted in credit tightening in Europe and around the globe. Tighter credit means lower economic growth. Slower growth will put even more pressure on the banks and the economy.