Thursday, November 24, 2011
"It's time to think what hitherto markets have regarded as unthinkable â€“ that the euro really is on its last legs ... Investors have gone on strike. The Americans are getting their money out as fast as they decently can. British banks have stopped lending to all but their safest eurozone counterparts, and even those have been denied access to dollar funding. The UK hardly has anything to boast of; it's got its own legion of problems, many of them not so dissimilar to those of the eurozone periphery." Trying to predict exactly what will happen next is folly but unless the Eurozone can re-establish credibility soon, things seem unlikely to be good for the UK economy for the next few years at least.