Solving the Eurozone Sovereign Debt Crisis Is Key in 2012
THE year is now drawing to a close. and most Investors are more than happy to consign 2011 to the history books.
Having started on an optimistic note and having withstood some unexpected blows early in the year from the Japanese earthquake and a spike in oil prices, as a result of uncertainties provoked by the Arab Spring, the resurgence of systemic threats emanating from the eurozone has reversed the mood.
Looking into 2012, a positive investment outlook depends upon successfully navigating around some very visible icebergs.
Firstly, the eurozone sovereign credit markets must be stabilised.
Secondly, the Chinese economic soft landing must not turn into hard landing. Thirdly, America must avoid stifling a nascent domestic recovery through political intransigence.
Email your email@example.com write PO Box Hall Liverpool L69 3EB The most threatening of the icebergs is clearly the stillunresolved eurozone sovereign debt crisis, which has prompted an accelerated deleveraging of the financial system both within Europe and outside, as the world's non-European banks and corporations move to insulate themselves from Europe's problems.
When compounded by fiscal austerity measures that have been deemed to be part of the medicine required to stabilise the situation, the result is that Europe has been almost solely responsible for the undermining of the global growth outlook for 2012.
We believe, however, that substantial progress has recently been made in Europe which holds out the prospect for much-reduced stress as the year progresses.
with at Specifically, it now appears that politicians and the European Central Bank (the ECB) are singing from the same hymn sheet, with a commonly agreed plan for embedding fiscal discipline in the single currency operating rules, while the ECB buys the co.uk, to us 48, Old time to implement the plan by providing unlimited support to the banking system - not directly to the Sovereign states. The price of the solution will still be a recession in Europe, but the likelihood of something worse looks to be much reduced. Moving on to China, the growth miracle built on exports and investment has been compounded over the past couple of years by a rapid expansion of credit, often through new unregulated channels, which has found an outlet in the housing market. …