Wolfgang Münchau, at the Financial Times, provides an extremely pessimistic outlook following last week’s news. Check it out!
The conclusion is that the cupboard is bare in terms of new policy options and that existing measures proposed by Merkozy and the ECB will not be enough to satisfy the markets. A Euro break-up is implied but not stated.
Today’s news elsewhere also highlights a shallow double dip recession for the UK – however, this does not assume a Euro breakup. A Euro breakup will signal very deep recession for many European countries, including the UK
- The falling euro and the crisis that wasn’t | The World | International affairs blog from the FT – FT.com (dralfoldman.wordpress.com)
- Sarkozy braced for political impact of downgrade – FT.com (dralfoldman.wordpress.com)
- The unprecedented behaviour of the central banks | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com (dralfoldman.wordpress.com)
- Is Germany Really Following a Policy of Economic Narcissism in Relation to Other Euro Countries? (dralfoldman.wordpress.com)
- Greek debt default threat grows – FT.com (dralfoldman.wordpress.com)
- Moody’s downgrades three French banks (ft.com)
- Fed Watch: How’s That Austerity Working? (economistsview.typepad.com)
- Euro Downgrade Rumor Roundup (blogs.wsj.com)