Things are going from bad to worse in Europe after recent elections in France and Greece. In Greece no party is able to form a government and the battle of words is still going on between different parties. All three party leaders in Greece have opposed new austerity measures demanded by the EU.

Elections results show that the wide majority of people have also refused the austerity measures imposed by the EU. Representatives of the EU have responded aggressively and insisted that the austerity measures must go forward.

President Nicolas Sarkozy also lost the majority in French elections and French people elected the first Socialist president in 17 years. Newly elected President Francois Holland also opposed the EU austerity plan.

Large public protests and large gatherings were also held in Spain against unemployment, public cuts and austerity measures. Unemployment in Spain has risen to nearly 25 percent. In Spain one in four is out of work. Thousands of people gathered in Madrid protesting the government austerity plan and spending cuts.

German Chancellor Angela Merkel's party, the main supporter of the EU austerity plan, has also suffered heavy losses in elections in her home state and losing nearly 50 percent of the vote.

Things are also going from bad to worse in Italy, Ireland and Portugal. Due to the uncertain situation in Europe, the euro is going down and now the U.S. is also feels the tremors of this economic meltdown.

In the first quarter, $2 billion has wiped out from leading U.S. bank JP Morgan Chase. After heavy losses, three top executives of the bank have quit. Stock prices are also going down in Asian markets.