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Tuesday, July 28, 2009
A great article in the FT Weekend highlighting rising consumer debt defaults in Europe.
With all the optimism over green shoots and stock market rallies, many remain worried that the global economy will face a second-wave assault, from credit cards or commercial mortgages or some unforeseen feedback that plunges the real economy back down, irrespective of asset prices.
I am interested in the negative feedback mechanisms that could undermine a return to significant growth over the coming years. The consensus is that the global economy will rebound in 2010, but to what level? And how will factors like the lack of financial aid to college students, or higher US savings rate, shape this recovery and re-order developed economies?
Labels: credit crunch, financial crisis
