One has to be struck by the financial market’s present equanimity about Europe’s deteriorating economic and political outlook as reflected in very low European sovereign bond yields. The reason for astonishment is not simply that all-too-many indicators suggest that a highly indebted European economy appears to be heading for a triple-dip economic recession and for a prolonged period of Japanese-style deflation. Nor is it simply that European politics continue to fragment at an alarming rate in major European countries like France, Italy and Spain. Rather, the immediate reason for surprise at the market’s equanimity is that Greece, the very country …read more
Source: American Enterprise Institute for Public Policy Research
