Posted: Jul 06, 2015 9:17 PM EDT
Updated: Jul 06, 2015 9:25 PM EDT
That stock market drop today wasn’t huge but directly related to the financial crisis in Greece.
Add in the impact it could have on retirement plans, plus the potential downfall of American exports to europe, and it’s enough to keep an eye out in the coming weeks.
Tad Burgan of Fort Myers said he doesn’t think a lot of people probably paid that much attention.
With the Greek economy failing it might be causing your 401k to free fall.
Burgan said: “In terms of people like myself who are retired and rely on your 401k at some point to help bring another revenue stream its got me a little anxious.”
With Greece making up .3-percent of the global economy, a long time financial advisor tells ABC-7 we shouldn’t hit the panic button just yet.
In fact, there’s a different European country we should really be looking at right now.
Todd Macke says: “I would watch Germany. Germany is the major economic power in western Europe. It’s Germany’s vested interest to keep the Euro together.”
An economist at FGCU says what’s happening across the pond has a huge ripple effect. Believing this could pull all of Europe into a recession – forcing companies overseas to cutback – which would hurt America’s export business.
Macke says there is this fear of a global slow down and therefore less consuming of energy and so those kind of sectors have suffered. There’s a fear of rising interest rates and that can kind of cut into corporate profits.
What both the economist and advisor can agree on is the future looks bleak for Greece.
Macke says: “It’s like a building on fire and there are no exits. The Greek people are going to suffer no matter what happens.”