Undated (Indiana’s NewsCenter) - The global markets are still not sure of what to make of Spain’s economic bailout.
Investors are concerned about the debt crisis spreading and whether Italy will be the next to ask for a rescue plan.
Spain's economy has been wobbling on the brink. The country was living way beyond its means.
“They lost balance,” Professor of Business and Government David Bach said. “There were too many bridges to nowhere here, if you want to use that metaphor from Alaska.”
Facing a mounting debt crisis, Spain turned to European leaders for help.
On Saturday, finance ministers announced a $125 billion bailout package.
At first, global markets rallied behind the news, but the excitement didn't last.
The Dow closed down 142 points Monday, a 1 percent loss. It opened Tuesday with a modest rally.
The global markets are not the only reason for concern in the U.S.
On Monday, the Federal Reserve released a new report that confirms just how badly American families were affected by the recent recession.
The net worth of the average American household dropped from $125,000 dollars in 2007 to $77,000 in 2010. This is a 40 percent decrease, to levels not seen since 1992. The big reason for the decline is the drop in home prices
However, oil prices are dropping due to the global economic uncertainty, which means gas prices are going down as well. The price of a gallon of gas is down 4 cents from a week ago.
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