Are We Facing a Financial Crisis Today?

This is a guest post.

It is hard to deny, that we are currently in a financial crisis. This is true not just in the United States but in the entire world! Indeed if

Lehman Brothers Rockefeller centre

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you look at what has been happening in Europe, the United States is not even in the worst shape among the advanced countries. Ireland, Portugal and especially Greece are suffering slow economic growth and crippling debt, with many other European countries not far behind them. Even countries that are still experiencing strong growth like China and India have no insurance against suffering a slow down in their rate of expansion.

However the United States is the world’s largest economy, so our milder economic problems have a larger proportional effect on the rest of the world. As the saying goes among economists, “When the U.S. catches a cold, the rest of the world gets pneumonia!” Therefore there is tremendous pressure on the United States to resolve the current financial crisis. America is trying to lower its debt and balance its budget before a serious financial crisis develops here like in Europe. If Congress and the President can agree on how this can be done then strong U.S. growth may return and thereby stimulate economic growth worldwide.

Alas, this debt cutting and budget balancing is easier said than done. Cutting spending means reducing or even eliminating government services that people have become accustomed to and prefer not to give up. Social Security for retirement, Medicare for health insurance, food stamps for the poor and many other spending programs all have people who depend on them and who are not happy to have them curtailed or eliminated. When such cuts were attempted in Greece and Great Britain, rioting broke out in major cities by those opposed to the cutbacks. Such violence is not expected in the United States, but it is still politically very difficult to make the kinds of cuts required for fiscal recovery. In fact the U.S. recently had one of its major credit ratings lowered because of skepticism that America has the political will to make the necessary changes.

On the plus side the United States has always managed to gets its financial house in order in the past, and most observers believe it will do so again, although there may be some spectacular political fireworks along the way! In the meantime many are wondering how to enhance their safety against today’s uncertainty and how to achieve financial freedom and peace of mind until better times arrive. While it is not possible to shield oneself completely from the financial crisis, it may be wise to get some cheap insurance quote to discover what types of insurance policies may give you some protection.

Whatever your financial status, there are always ways to protect what you own if you are willing to shop around. But whether one receives cheap insurance quotes or higher ones, now is the time to protect your assets until today’s financial crisis passes.

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