Greece was the first country to get into trouble, followed by Spain & Portugal. Now, we've Hungary who is going to default and this causes Euro to fall below $1.20. If Hungary can falsify its deficit, I think Greece, Spain & Portugal also have more skeletons in their closets which they've not revealed.
Looks like Euro is highly likely to reach parity with USD in the foreseenable future. Another issue is there is a significant drop in corporate bonds demand as governments are also trying to sell government bonds to the same group of fixed-income buyers/investors. When corporations can't raise monies for their businesses, they can't expand and won't hire more employees.
How on earth can the world economies recover when employments don't go up and people have lesser to spend?
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