The shadow of financial crisis is still looming throughout the world, as economies evaluate the effects of the recent financial problems. Since 2007, many economies throughout the world have faced financial challenges in one way or the other. In 2008 and 2009, the United States was greatly affected with its economy being reduced to the ground and at the moment, it is still working its way out of recession. Many firms were greatly affected, with some requiring financial bailout for them to withstand the storm of this recession. The United States is not the only country that was affected. A number of European economies were affected too. However, the recent nation to be hit by a fiscal crisis is Greece, a crisis that has spread to Spain and Portugal.
However, the United States has an opportunity to learn early enough about the fiscal issues that may as well be coming on its way. According to Ferguson (2010) of the Financial Times, the fiscal crisis in Athens, then Madrid and finally Lisbon may be headed for the United States, an economy that has been living above it means in the recent times. The current state of the United States economy is largely supported by borrowed funds that cannot sustain an economy for a long period of time. Therefore, the Federal Reserve and the Obama administration in general has to come up with policies that will not only protect the economy from any further destruction by fiscal crisis, but policies that will pull this economy out of the current state of deficit.
Similarly, it should be understood that failure by the Americans to take precautions to protect the American economy will result in a shift of the center of power from the United States to probably Europe or Asia in a nation such as China whose economy has remained relatively stable despite the effects of global recession. Such a move will render the United States powerless and speechless in regard to world politics and the general calmness and security of the world will be distorted completely. Therefore, a wakeup call should sound in Washington that if the home of civilization i.e. Greece has not been spared, then the United States will not be spared too if it fails to take precautionary measures to protect and stabilize its economy.