Data source: Yale University Economics Department web site, last accessed March 25, 2015. Economic Crisis is only felt by the ordinary man, poor and middle class.   Both sides called it a delay, not an official default. World Bank data puts the extent of Greece's economic contraction into perspective. It isn’t. This time around, it wouldn’t be surprising if investors are blindsided again. The strong U.S. dollar and weak oil are beginning to take their toll on U.S. corporate earnings. In January, the Bank of Canada lowered its benchmark interest rate from an even one percent (where it has been pegged since September 2010) to 0.75%. This is FREE from Profit Confidential. But most of the jobs being created today are low-paying, part-time jobs. First came the 1973 crisis, when OPEC's Arab members curtailed supplies in response to the Yom Kippur war. On June 27, Greek Prime Minister Alexis Tsipras announced a referendum on the measures. That means that for every $1.00 of earnings a company makes, investors are willing to pay $27.85. The Federal Reserve could douse the Wall Street hootenanny when it raises interest rates later this year. Unprecedented accommodative measures from central banks and recovering corporate earnings have supported the market and made it the best investment alternative thus far. First, public sector debt had reached such elevated levels that a default had become a question of when, not if. Economic Report. The massive and multifaceted policy responses to the financial crisis and Great Recession — ranging from traditional fiscal stimulus to tools that policymakers invented on the fly — dramatically reduced the severity and length of the meltdown that began in 2008; its effects on jobs, unemployment, and budget deficits; and its lasting impact on today’s economy. Between July 2014 and the end of October, oil prices dropped more than 22%, from $105.00 per barrel to $81.00 per barrel as a result of increased supply and a weakening global economy—the worst metrics from a supply/demand perspective. What did three rounds of QE accomplish? The last time investors lifted the ratio to those heady levels was back in late 1999, just before the dot-com bubble put everything into perspective. Financial crises are, unfortunately, quite common in history and often cause economic tsunamis in affected economies. On the other hand, a strong U.S. dollar makes it more difficult for foreigners to do business in the U.S. A strong currency is also tough on U.S. companies that derive a portion of their sales from abroad. Japan’s economy will advance a measly 0.6% in 2015 and 0.8% in 2016. Brazil's GDP fared worse than almost any other major economy in 2015, contracting by 3.8%, according to the national statistics agency IBGE. This $1 Marijuana Stock on the Verge of Breakout? Then there’s the internal conflict in the eurozone with Greece, in particular, but also Spain, Italy, and Portugal. An Economic Crisis Is the Heart of Puerto Rico’s Financial Crisis July 27, 2015 5 min read Download Report Authors: Rachel Greszler and Salim Furth (Source: Economic Research, Federal Reserve Bank of St. Louis web site, last accessed March 25, 2015.). Despite the weak underlying economic indicators, the U.S. and global markets are soaring. As I mentioned earlier, the S&P 500 has advanced an astonishing 200% since the bottom in 2009. Shortages of bottled gas caused a fuel crisis during the blockade. In 2015 and 2016, the United States experienced the second type of event. If the cost of oil remains low, there is a good chance the Bank of Canada will need to cut its rate even further in the coming months. I am asking: if the interest rates rise, will the U.S. economy be able to handle it? All rights reserved. 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