Another Dangerous Year Ahead for Europe's Investors

Daily Post (Liverpool, England), December 14, 2011 | Go to article overview

Another Dangerous Year Ahead for Europe's Investors


THE investment outlook in 2012 depends very largely upon Europe. If the euro fragments, there would almost certainly be a depression in Europe and recession in the wider world. If a practical way forward is agreed that convinces bond investors that they can safely lend to European governments in euros, there is the potential for a sharp rise in the price of risk assets, which would be driven partly by the deployment of investment funds currently frozen by uncertainty.

The plan outlined by the EU Summit last week ticks some important boxes. It proposes innovative routes to increase capital buffers (using the International Monetary Fund) and commits to apply penalties for fiscal misbehaviour in a new intergovernmental agreement between most of the members of the EU. However, details are conspicuous by their absence, including an understanding of the European Central Bank's (ECB's) role as lender of last Email your letters@dailypost.or write PO Box resort.

Hall Liverpool L69 3EB The net result is that, although steps forward have been taken, we are still some way from diffusing the tension currently paralysing the European banking sector and investors. Chancellor Merkel has recently done a good job in emphasising that there is no magic solution (the ECB buying everyone out of their difficulties), signalling that stabilisation will take time.

Looking at the situation through German eyes, it is logical to retain the "big stick" of an implied threat to leave an intransigent debtor nation to the mercy of the markets while they have yet to fully implement a more sustainable budgetary direction.

with at For us as investors, however, we must recognise that a decision has been taken that it is worth paying the price for a structural re-engineering of the euro after a Teutonic model, namely a prolonged recession caused by fiscal austerity compounded by accelerated deleveraging of the European banking system. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Another Dangerous Year Ahead for Europe's Investors
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.