While advanced nations are facing some of the highest debt ratios since World War II, IMF economists cited research by Moody’s Analytics that suggested countries such as the UK, US and Canada could afford to live “forever” with relatively high debt shares compared with their pre-crisis averages, reports The Telegraph.
The next crisis is here.
The BREXIT or British exit from the EU is this crisis’ Bear Stearns: an unexpected situation that Central Banks will go all out to sweep under the rug.
Whether or not they will succeed remains to be seen. But what has started cannot be undone.
For seven years, the Central Banks have maintained the illusion that all is well. Meanwhile, global leverage has exploded to record highs, with the bond bubble now a staggering $100 trillion in size.
Cyprus is preparing for the presidential ballot this weekend after last week conservative leader Nicos Anastasiades won 45.4% and his opponent communist-backed independent Stavros Malas took 26.9%. According to economists, Mr Anastasiades might be the one who will do what is needed to help Cypriot economy to recover and to strengthen international diplomatic relationship, reported Financial Times.
FRANKFURT — A dramatic anti-austerity vote leaves Italy lying outside the fortress the European Central Bank constructed around the eurozone last year and vulnerable to a market attack.
This week’s election leaves slim prospects for a durable, reform-minded government in Rome and exposes a flaw in the bond-buying defence plan the ECB put together last September — a weakness that could see the eurozone crisis roar back to life.
Silvio Berlusconi may have the last laugh — at Europe’s expense.
Once the subject of German Chancellor Angela Merkel’s barely suppressed titters, the former Italian leader roared back from the political wasteland in yesterday’s election, blocking the formation of a new Italian government and fracturing the eurozone’s brittle newfound stability.