“We Fear A Global Economic Depression—Less Severe In N. America—Originating In Eurozone"

[Sheer Heart Attack]

Euro Land May Face Full-on Bond Meltdown: Economist

CNBC.com

6 Sep, 2011

Sometimes a summer vacation can set you up for the autumn, allowing you some-hard earned rest to recharge the batteries before returning to the office, light of heart and confident about the prospects for the rest of the year.

That was clearly the case for Carl Weinberg, the chief economist at High Frequency Economics who hit the office on Monday night with the following words of cheer.

“We fear a global economic depression—less severe in North America—originating in Euroland’s sovereign debt crisis and banking sector fragility,” he said.

“This is now our baseline forecast. It includes near-zero interest rates and bond yields, at least on the safest sovereign credits. It includes flat prices, or outright deflation, and the highest unemployment rates the G7 economies have experienced since the 1930’s,” said Weinberg in a research note.

All getting a little grim out there.

[interestrateripoff]

Got to love the view the USA will somehow avoid all this. They are going to be in for a huge shock when they realise the entire financial system is too interlinked.

Europe and the US are totally screwed along with everyone else who've jumped on the globalisation bandwagon.

[libspero]

Europe and the US are totally screwed along with everyone else who've jumped on the globalisation bandwagon.

I see it as a Mexican stand-off between Meerkel and Bernank. Everyone is looking to the US for a bailout, I reckon Ben's sticking two fingers up and saying this is Europe's mess, YOU sort it out.

Everyone can see where it's headed on the current course.. yes everyone is interlinked.. but who will blink first?

[inflating]

World Bank says double dip unlikely http://uk.reuters.com/article/2011/09/06/uk-worldbank-asia-idUKTRE78519720110906

Who's going to be right? Place your bets

[aa3]

A strange thing is the world economy as a whole is doing great. It is growing at about 4% a year which is excellent.

But like half the world economy, the US and Europe, are treading water.. and the rest of the world is flying at 8% a year.

[MrFlibble]

Got to love the view the USA will somehow avoid all this. They are going to be in for a huge shock when they realise the entire financial system is too interlinked.

Europe and the US are totally screwed along with everyone else who've jumped on the globalisation bandwagon.

Pish, another bailout is all that's need and it will be right as rain.

Once this interlinked clusterfook blows a lot of people are going to wish they were back in pre-2007 happy happy never ending hpi land...

[Gone baby gone]

Got to love the view the USA will somehow avoid all this. They are going to be in for a huge shock when they realise the entire financial system is too interlinked.

It is indeed rather hilarious, but it's embedded deep, deep in the US psyche that everyone in Europe is a wastrel living on state handouts and loans from uncle sam, whereas everyone in the USA is a super-productive capitalist hero.

Many of the problems that have led us here - offshore manufacturing for onshore consumption, tax evasion / avoidance by the richest, falling real middle incomes and a debt bubble so big it obscures the sun - originated in the good ole US of A.

Only their reserve currency status has preserved them up until now (otherwise they would have been where Greece is now sometime about a 6-7 years ago), but even that is starting to look a little thin.

[Dorkins]

Got to love the view the USA will somehow avoid all this. They are going to be in for a huge shock when they realise the entire financial system is too interlinked.

Even if the rest of the world was completely solvent, America's government+mortgage+personal debt bubble would seal their fate in the end.

Edited September 6, 2011 by Dorkins

[Self Employed Youth]

And I was hoping the sheer amount of people not working in the UK due to being asylum seekers, pensioners or children would put upwards pressure on wages.

So what happens when the boomers die off, and the unemployment has to be spread amongst the working age population?

[oracle]

Got to love the view the USA will somehow avoid all this. They are going to be in for a huge shock when they realise the entire financial system is too interlinked.

Europe and the US are totally screwed along with everyone else who've jumped on the globalisation bandwagon.

well the US never really wanted the global empire in the first place.they just had the baton of responsibility passed to them after ww2.

they have enough capabiltiy to get through reasoably unscathed if they hook up with canada(and ourselves)

the EU has too many warring factions within it to be a cohesive force....and frankly nobody trusts germany.

they might have got away with it if things had been left cordial for another 100 years or so...but they've overcooked it (again)