This morning I made the argument that the global economy is growing across the breadth of developed and developing economies. I still have a problem with Europe though as I believe the risk is to the downside. Basically, the policy response is deflationary, just as the U.S. Treasury has written. I didn’t write enough though because while I pointed to the likely outcome from America’s asset bubbles, I failed to talk about likely outcomes in Europe.
I really want to review what I have said in the past in the context of the new information that presents itself.
Let’s start in December 2011 when the Italian crisis was at its apogee. This was a crisis that resulted in the ECB’s starting its vaunted LTRO program. And let’s remember that this intervention was not enough as the ECB had to sta...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.