If you know me at all, you know I live, breathe and sleep cheese. My husband once joked that in our house we put it out like other people put out candies in little bowls. It sounded like a good idea to me.
Fittingly, I’ve been eating brie (Fromager d’Affinois, a double-cream brie from France that tastes like a triple-cream) while trying to wrap my brain around this European debt crisis that has the U.S. stock market in such turmoil--this week the Dow lost 2.9%. Here’s what I’ve learned:
1. Many of the European countries are like little dominoes, independent but financially interconnected on a game board called the euro zone, consisting of 17 countries (see list).
2. Because some of the countries in the euro zone are in trouble financially, the entire structure is at risk and there are global fears of a nasty European recession. Market exposure to Europe has financial markets rattled.
3. The major drags are Greece and Italy (Portugal and Ireland were already bailed out, and Spain is in serious trouble, too). Greece and Italy, both overloaded with debt, were forced by soaring borrowing costs to get their financial houses in order through "austerity" measures (spending cuts and tax increases).
4. The leaders of both Greece and Italy resigned, and the ordeal has highlighted theproblem of a common European currency, the euro. The debt is so large that some want the European Central Bank to be the bailout lender,but European leaders are arguing over its role. The crisis threatens to destroy the euro zone altogether.
As of Friday, a new lending fix is in the works, which could help stabilize the markets. Obviously, this is a story still unfolding. Time for more brie.
(Shout-outs to Neal for the tagline, Renny and Karen for the inspiration!)
About the cheese: Fromager d'Affinois - yum! $12.99 a pound at Whole Foods but I've found it at Trader Joe's, too. Trust me, you won't need a pound!
