Since the global financial crisis hit in 2008 economies around the world have been staggering towards recovery. With 1.2 billion people living on less than $1.25 a day, global poverty persists with no major relief in sight. As the International Monetary Fund monitors the markets, the recent Cyprus bail out has them wondering, What if the global economy took another hit?
The Cyprus bank bailout last month has European officials worried. Although Cyprus is geographically and financially different from the rest of the euro-zone, it is still one of the 17 countries tied to the Euro currency. As the global financial market has become complacent over the course of this year, assuming the euro crisis has subsided, historians and financial experts are watching closely to see if the Cyprus bailout will create the next European financial crisis or give way to the complacent market.
Along with the most recent European bailout, reports suggest that Europe and The United States are on the brink of a macroeconomic shock. With the global unemployment rate at its highest level, 40 percent of the world's unemployed, The United States is not far behind as recent sequester cuts may threaten hundreds and thousands of jobs here at home.
Although studies show we have made progress, there seems to be a bleak future involving the successes of relieving global poverty. As we examine global markets, failing economies and advancing unemployment rates, could the next financial crisis throw us into an even deeper recession and would the world ever be able to fully recover?