There's an acronym floating around that seems to be spot-on with regard to the fiscal problems of the European Union. It's called PIIGS. Actually, PIIGS is simple shorthand for Portugal, Ireland, Italy, Greece, and Spain. But, more than anything, these countries truly are "pigs" when it comes to spending and social programs. They are all in debt up to their eyeballs.
Because of these PIIGS, the EuroDollar has been sliding faster than a speeding bullet. Also, these PIIGS may be the reason that the entire European Union disintegrates after having only been in existence for a few years since its founding in 1993. But, for us, the weakening of the EuroDollar is going to kill our trade with Europe because any American made products will become increasingly more expensive for Europeans to buy.
Our stock market and our recovery was being partly driven by our dollar being weak against the EuroDollar. It gave us a trading advantage and the stock prices of heavily exporting companies were continually bid up by higher export sales. Now, with that reality now disappearing, we just might see our economy slip into a secondary or double-dip recession. The dramatic drop in our stock markets over the last 3 weeks says it all. If only those PIIGS could fly!