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| Europe |
| Spain's financial outlook 'grim' |
| 2008-12-21 |
| THE governor of the Bank of Spain has issued a bleak assessment of the economic crisis, warning that the world faces a "total" financial meltdown unseen since the Great Depression. "The lack of confidence is total,'' Miguel Angel Fernandez Ordonez said in an interview with Spain's El Pais daily. "The inter-bank (lending) market is not functioning and this is generating vicious cycles: consumers are not consuming, businessmen are not taking on workers, investors are not investing and the banks are not lending. "There is an almost total paralysis from which no-one is escaping,'' he said, adding that any recovery - pencilled in by optimists for the end of 2009 and the start of 2010 - could be delayed if confidence is not restored. Mr Ordonez recognised that falling oil prices and lower taxes could kick-start a faster-than-anticipated recovery, but warned that a deepening cycle of falling consumer demand, rising unemployment and an ongoing lending squeeze cannot be ruled out. "This is the worst financial crisis since the Great Depression'' of 1929, he said. Mr Ordonez said the European Central Bank, of which he is a governing council member, will cut interest rates in January if inflation expectations go much below two per cent. |
| Posted by:tipper |
| #5 Wait a minute, I thought |
| Posted by: crosspatch 2008-12-21 21:08 |
| #4 Well there was a depression in 1937...but at that time Spain was getting out of their Civil War... |
| Posted by: Uleck Ghibelline9225 2008-12-21 19:48 |
| #3 P2K, the magnitude of this "crisis" is due exactly to the fact that the girly-men in charge of the central banks and treasuries are pissing in their pants in front of everybody. You can't blame the press for reporting what will sell papers. Some think the Depression was aggravated by the untimely death of Benjamin Strong, not only his judgment and decision making, but the confidence he inspired. Bernanky and especially Paulson are frightening the markets by their palpable insecurity and fear. The Messiah should give Paul Volker a lot of air time. |
| Posted by: Nimble Spemble 2008-12-21 15:37 |
| #2 That's too bad. |
| Posted by: g(r)omgoru 2008-12-21 15:25 |
| #1 "This is the worst financial crisis since the Great Depression'' of 1929, he said. Of course talking like that really encourages one to go out and spend money you do have. /sarcasm off When are these dolts and pols going to learn that MSM lives for crisis. They'll make one up if necessary to sustain their last gasp of air. It's time to gag it boys. Less talk, more real hard decisions and actions. |
| Posted by: P2k on holiday 2008-12-21 14:43 |