Wednesday, Feb 24, 2010
Martin Wolf on the economic future
FT: The world economy has no easy way out of the mire
His thoughts on the way out
Posted by letthemfall @ 09:42 AM (595 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. ontheotherhand said...
Investing in a basket of emerging market funds and shorting the pound and our gilts seems to be the only total life hedge to living and working in this country.
2. mountain goat said...
"We must start from the reverse side of the stimulus coin: the private sector is now spending far less than its aggregate income. Forecasts in the Organisation for Economic Co-operation and Development's latest Economic Outlook imply that in six of its members (the Netherlands, Switzerland, Sweden, Japan, the UK and Ireland) the private sector will run a surplus of income over spending greater than 10 per cent of gross domestic product this year."
That surplus of income isn't being used to pay off debts taken on in the credit super-bubble you describe later is it, Mr Wolf?
"So how do we exit? To answer the question, we need to agree on how we entered. A big part of the answer is that a series of bubbles helped keep the world economy driving forward over the past three decades. Behind these, however, lay a credit super-bubble, which burst in 2008."
3. icarus said...
mg - I think he'd answer 'yes' to your question. In last week's FT article 'How to walk the fiscal tightrope that lies before us' he wrote of Ireland, Spain, UK and US: "these are the countries that had the biggest credit booms and asset bubbles (so it is here that) private sector spending has been most constrained by the pressure to deleverage".