Wednesday, August 8, 2007
An analyst at the Bank of Italy expressed surprise that the Slovenian central bank had spoken publicly on the threat to consumer demand. He said: “The markets were very unsettled on Friday. Today they seem a bit calmer but still it seems very unwise for a
Mr Trichet and other central bankers are trying to come to grips with the long- and short-term effects of the crunch in credit markets. Many European investors have purchased securities linked to US subprime mortgages and some have been adversely affected, including IKB, the German bank that required a state-led bail-out last week.