Current Event Article

Issue: The economic crisis' last phase won't be as destructive as the subprime debacle.However,it carries the origins of kind of emerging markets crisis,collapsing currencies,reversing capital flows and markets speculating on government default.

Significances:1) The European banks worry as well as the entire countries that investors panic about. The contagion threatens to spread westwards into the heart of Europe.
2) The economic crisis has turned into an existential challenge for the EuropeanUnion. It also emphasized how underequipped the EU's institutions are in dealing with the situation.
3) Europe's and tha U.S' economies stiil haven't recovered after the subprime disaster. Although,on average Europes banks remain more laveraged than American . However, at the same time, the European banks bet much more radically than Amercian banks on profitable yet risky credits to emerging markets. As a result the EU banks face a big risk in these markets.


Analysis: The article does not seem biased,it is rather evaluating the situstion more precisely. The source is valuble and useful, as it covers the information on a substantial and worrying issues of the World Crisis. It also underlines the crisis bank and market tendencies not only in Europe but also in the U.S.

Quote:

"European banks bought up some 40 percent of the toxic securities made in America, but have been slower to write off losses and recapitalize than their American rivals. On average, they also remain substantially more leveraged than American banks, making write-downs and restructuring much more painful—and likely to be dragged out."(article)

MLA:
http://www.newsweek.com/id/186969/page/1