Europe Crisis: “Bad Romance” on a Global Scale

The European economy has been a trainwreck for a long time, but there have been varying stages of it. From 2007 through 2010 or so, the European economy basically went through the same trajectory as the US. There was a violent downturn during the financial crisis, and then an upturn. But thanks to the European sovereign debt crisis, the upturn was cut short.

Submitted by Alasdair Macleaod via Peak Prosperity, The Christmas and New Year's break, when Europe shuts down and stops thinking, is now well and truly over, and we are reawakening to the same old problems: Greece, Spain, Cyprus, Portugal, Italy, France... all with their hands out for money from Germany, Holland, Finland, and Austria.

By Simon Johnson If economic performance is in part a beauty pageant, as John Maynard Keynes suggested, both the U.S. and Europe seem to be competing hard this summer for last place.  If anything, based on the latest flow of news coverage, Europe might seem to be experiencing something of a resurgence – last week the eurozone agreed on a big deal involving mutual support and limiting the fallout from Greece’s debt problems.  In contrast, the U.S. this week seems to be completely mired in a political stalemate that becomes more complex and confused at every turn.

Slides for speech to World Bank conference (Lessons from East Asia and the Global Financial Crisis), Tuesday in Seoul (1pm local time), are attached.  This post summarizes my main points.

The underlying momentum in the global economy is weaker than it should be at this point of the economic cycle, five years after the global crisis LONDON — As evidence mounts that a mid-year slowdown taking place in the world economy, the next few days will offer a clearer glimpse of how that will impinge on policymaking and buoyant financial markets.

Lady Gaga didn't shy away from dropping F-bombs and disparaging every part of her former assistant's character during an Aug. 6 deposition, The New York Post has recently learned.

The much-denied hard landing in China is now underway with weakening data everywhere one looks. Today there is More Bad News For China as FDI Falls. Foreign direct investment in China fell to the lowest level in two years in July, fueling concern that waning confidence in the nation’s growth prospects may restrain any economic rebound.