On January 21st, the world's stock markets experienced their greatest fall since September 11th 2001. The world economy continues to suffer the consequences of the sub-prime crisis in the United States. Is recession inevitable ?
Le Temps - Switzerland
"The crash of January 21st 2008 is reminiscent of other periods in history. But there is something unique about this situation", considers Myret Zaki. "This is not a moment of panic following an act of terrorism like in September 2001. Nor is this the reflection of an excessive evaluation due to the bursting of a speculation bubble, like in 2000. This time, the brutal fall in stock exchanges has occurred while company balance sheets are healthy, outside of the financial and mortgage sectors. This crash represents an adjustment to reality since investors have understood that financial markets are infected by faltering bonds. ... The return of investors on the stock exchange, once it has been 'cleaned-up', must imperatively be accompanied by a fundamental consideration of the link between an actual bond and the financial title that is connected to it." (22/01/2008)
» full article (external link, French)
More from the press review on the subject » Financial Markets, » Global
All available articles from » Myret Zaki
Libération - France
Interviewed by Christian Losson, professor of economy Michel Aglietta explains why Europe is bound to be most affected in a grave crisis. "Ireland, the United Kingdom and Spain are going through a real-estate crisis that has a lot in common with the United States, though financing techniques differ with price bubbles, loans with variable inflation rates and excessive debts. The real-estate sector is going to crumble, if not collapse, and take its toll on the banks, which are considerably implicated. Germany, currently plumped up with its exportation, will also find itself with a bit of a chill. As for France, a country dreaming of 2 % growth, it's crazy. The most we can hope for is 1.5 %. Europe will be paying the price for its inert presence in globalisation. Incapable of mobilising a budgetary and monetary policy like the United States, it will take more time to recover." (22/01/2008)
No comments:
Post a Comment