Leading Financial Newsletter Profit Confidential Predicts Recession this Year for Two Big Eurozone Countries

Two big eurozone countries are headed back into a recession this year, according to Michael Lombardi, lead contributor to popular financial newsletter Profit Confidential.

New York, NY (prHWY.com) January 10, 2012 - Two big eurozone countries are headed back into a recession this year, according to Michael Lombardi, lead contributor to popular financial newsletter Profit Confidential. Spain, the eurozone's fourth largest economy, and Italy, the third largest eurozone economy, will be in a recession in the first half of 2012.

"Spain has the highest unemployment rate in the eurozone at a staggering 21.5% and Italian consumer confidence sits at its lowest level in 16 years," says Lombardi.

"Italy and Spain cannot fall back into recession without affecting the other 17 member countries. A big risk is France, the second largest eurozone member, falling into a recession."

Lombardi points out that the trouble will cross the ocean and have an effect on North America. "Banks in the United States have major exposure to eurozone countries. The risks that weak, or defaulting, eurozone countries represent are high for large American banks," says Lombardi.

While there has been plenty of talk regarding fixing the eurozone countries with the largest debt exposure, Lombardi points out that there has been no execution. "Germany continues to balk at idea of the European Central Bank (ECB) printing more money," says Lombardi.

Lombardi is also critical of the new, severe Spanish and Italian austerity measures. Italian Prime Minister Mario Monti secured final passage on austerity measures that will put a tax on luxury goods. "This will increase gas prices, and create a new tax on primary residences. Sure, the austerity measures bring down government debt, but they also stifle consumer spending further," Lombardi writes in Profit Confidential.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six

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Tag Words: recession, us economy, eurozone, housing market, profit confidential

Categories: Business

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