The sovereign debt crisis in Europe threatens the economies of the world.
The US, having the largest economy in the world, is especially vulnerable.
Most economies are fragile. The fragility has been caused by excessive debt. The US is in a precarious position, and can
ill-afford to suffer another deep recession.
Governments and corporations are currently evaluating the impact of certain scenarios should the European sovereign debt
crisis get worse or remain unresolved.
Investors need to consider these scenarios in their planning, whether they are 25, 45, 65 or 85 years old.
Most agree that the current deleveraging that is rippling through economies, industries, companies and households will take 10 years to complete. The crisis started in 2007, and thus it will be 2018 before the world has completed the deleveraging cycle.
The three possible scenarios are:
This model focuses on Disintegration and its impact on the US economy and securities.