ECB’s Hurley Says Euro Economy to Contract Next Year


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Several months back, the eurozone national governments fell into ‘Ponzi’ as growth prospects went negative.

They now seem to be in that downward spiral of falling revenues, rising transfer payments, and rising credit default premiums.

Without a fiscal response to restore growth this will only get worse, and the National governements are, by treaty and by market dependence, in no position to enact a meaningful fiscal expansion.

Highlights

Trichet Says Decline in Oil Prices Is Helping Global Economy
ECB’s Trichet Says ‘Fragility’ of Financial System Is Challenge
Nowotny Says ECB Is Keeping Some ‘Fire Power’ on Interest Rates
ECB’s Hurley Says Euro Economy to Contract Next Year
Bini Says ECB’s Rate Decision Data Driven, Ansa Says
Italy’s EU20 Billion Bank Plan Wins Approval From EU
Germany Scales Down Second Stimulus Package, Sueddeutsche Says
Sarkozy Will Announce Measures to Help Auto Industry by Jan. 31
European Bonds Open Little Changed; Two-Year Yield 1.75 Percent


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2 Responses to ECB’s Hurley Says Euro Economy to Contract Next Year

  1. warren mosler says:

    Interesting! Would tend to support the $ in the fx markets, seems.

    Reply

  2. RSG says:

    This was on Bloomberg this morning:
    “US banks may start to sell guaranteed bonds denominated in Asian currencies as supply outstrips capacity in dollar, euro, and pound markets; “Banks like Morgan Stanley and Goldman will have to tap Asian currencies because the potential supply is too big for dollars, euros and pounds to take on…It’s a perfect product for insurance companies in Asia. The bonds offer good yield pick-up, high credit ratings, good liquidity and no currency mismatch.” Bloomberg

    Reply

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