Unemployment in the eurozone rose by 169,000 in March, bringing the unemployment rate to its highest ever since the euro was created n 1999.
Bad jobs reports coming out of Europe and the United States caused stock prices to drop Wednesday. The Dow Jones industrial average fell by 87 points before closing down 10.75, while the Standard & Poor's 500 fell 3.51 points to 1,402.31.
You can follow the history of the crisis in this archive of related articles compiled by Bloomberg.
Catherine Rampell, writing for the New York Times, sums up the three dangers the eurozone's problems pose to the U.S.: trade, the stock market and credit. Europe's struggle leaves a smaller customer base for our exports, makes our dollar (and thus our goods) more expensive and sends stocks down. Worse, because European countries own so much of each other's debt, one country's troubles will have a domino effect on those tied up with it. That would make it harder for Americans to borrow money.
Reuters wades through several different scenarios, ranging from a mild eurozone recession to a financial meltdown.
In the case of the latter, Stella Dawson writes that the risk of one or more countries leaving the eurozone "would cause political, economic and market upheaval."
This audio report from Marketplace in 2010 shows how European troubles don't affect all regions of the U.S. in the same way. Cities tied to the automobile and pharmaceutical industries could be hit harder, for example.
As usual, the Economic Collapse blog does not disappoint with its, "27 Statistics About the European Economic Crisis That Are Almost Too Crazy to Believe." It includes Spain's sky-high unemployment rate (now at 24.1 percent) and asks "Just how far can you stretch the rubberband before it snaps? Perhaps we are about to find out."
"The European financial system is leveraged like crazy right now. Even banking systems in countries that you think of as 'stable' are leveraged to extremes. For example, major German banks are leveraged 32 to 1, and those banks are holding a massive amount of European sovereign debt. When Lehman Brothers finally collapsed, it was only leveraged 30 to 1."
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