"
Eurozone recovery under threat as credit contracts again"
.
""We should not succumb to optimism that everything has been overcome. The whole world is in recession together and nobody alone can export their way out of the downturn. The recovery cannot last unless there is rise in global demand, and jobs are created, and there is no sign of that," he told the Luxemburger Wort.
"The rebound in Germany and France is not sustainable. The state has stepped in to compensate for the private sector. As long as economic growth relies on the state, you cannot talk about durable recovery," he said.
Similar warnings have come from Spain's Jose Gonzalez-Paramo and from the Bundesbank's arch-hawk, Axel Weber, who fears a second wave of credit stress in coming months."
.
.
""They are in panic," said Hans Redeker, currency chief at BNP Paribas. "They know the money supply and credit figures coming out are going to be awful." He added that Germany's stimulus measures have put off deep problems until after the election in September. The car scrappage scheme has brought forward demand, implying a cliff-edge drop when the scheme expires. Kurzarbeit (short work) schemes that subsidise companies to keep idle workers on their books are slowly bleeding corporate balance sheets. "This has delayed the restructuring that needs to occur," he said."
Sem comentários:
Enviar um comentário