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Even If Europe Averts Crisis, Growth May Lag For Years

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http://www.nytimes.com/2011/09/30/business/global/even-if-europe-averts-crisis-growth-may-lag-for-years.html?_r=1&ref=business

It has happened time and again in recent months as Europe’s debt crisis has played out. Stocks stage a remarkably strong comeback on expectations that a solution has been found. Then they quickly resume their decline as hopes dissipate, leaving investors puzzled and frazzled.

What is going on?

The problem, say close watchers of both the subprime financial crisis in 2008 and the European government debt crisis today, is that many investors think there is a quick and easy fix, if only government officials can come to an agreement and act decisively.

In reality, one might not exist. A best case in Europe is a bailout of troubled governments and their banks that keeps the financial system from experiencing a major shock and sending economies worldwide into recession.

But a bailout doesn’t mean wiping out the huge debts that have taken years to accumulate — just as bailing out American banks in 2008 didn’t mean wiping out the huge amount of subprime debt that homeowners had borrowed but couldn’t repay.

The problem — too much debt — could take many years to ease.

”Everybody has been living beyond their means for nearly the last decade, so it is an adjustment that will be painful and long, and it will test the resilience of societies socially and politically,” said Nicolas Véron, a senior fellow at Bruegel, a research organization in Brussels.

More at the link.

An interesting article.

The press seems to be leaking these types of bearish articles more and more frequently, it's almost as if the people are being slowly prepared for the inevitable collapse.

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Yes, the Euro crisis is the same as your neighbor building his house out of popsicle sticks. They might be able to avert this collapse, but everyone with any common sense knows it will eventually collapse.

One does have to wonder who is leaking/writing these articles. The liberal journalists don't have enough common sense to figure out what is wrong or to say what I just did; they just repeat what their heroes, the globalist/one world politicians tell them.

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Yes, the Euro crisis is the same as your neighbor building his house out of popsicle sticks. They might be able to avert this collapse, but everyone with any common sense knows it will eventually collapse.

And it will cover you in a sticky mess when it does - notwithstanding the fact that you built your house out of something relatively more sensible, like cheese.

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Fixed that article...

It has happened time and again in recent months as Europe’s debt crisis has played out. Stocks stage a remarkably strong comeback on expectations that a solution has been found of exploiting short-term gains. Then they quickly resume their decline as hopes dissipate, leaving investors puzzled and frazzled really annoyed and moaning to everyone who will listen that the easy money isn't so easy any more.

What is going on?

The problem, say close watchers of both the subprime financial crisis in 2008 and the European government debt crisis today the crisis, is that many investors idiots think there is a quick and easy fix, if only government officials can come to an agreement and act decisively.

In reality, one might not exist does exist which is that of a debt forgiveness programme, effectively a reset, wiping out debts. However those in charge won't stand for that, since it would undo all their good work. A best case in Europe parts of Europe, the US and eventually the UK is a bailout of troubled governments and their banks that keeps the financial system from experiencing a major shock freezing up completely and sending economies worldwide into technical recession.

But a bailout doesn’t mean wiping out the huge debts that have taken years to accumulate Well done that journalist— just as bailing out American banks in 2008 didn’t mean wiping out the huge amount of subprime debt that homeowners had borrowed but couldn’t repay. No, it just changed who holds the unpayable debts

The problem — too much debt Well done, at least you haven't claimed the problem was caused by the Eurocould will take very many years to ease.

”Everybody has been living beyond their means for nearly the last decade, so it is an adjustment that will be painful and long, and it will test the resilience of societies socially and politically, bring down Governments and cause social unrest the like of which hasn't been seen since the last Civil Wars" said Nicolas Véron, a senior fellow at Bruegel, a research organization in Brussels.

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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