World markets have entered a “new danger zone”, according to the president of the World Bank. Robert Zoellick, investors had lost confidence in the economic leadership of several key countries.
“What’s happened in the past weeks is there is a convergence of some events in Europe and the United States that has led many market participants to lose confidence in economic leadership of some of the key countries,” Mr Zoellick said.
“I think those events combined with some of the other fragilities in the nature of recovery have pushed us into a new danger zone. I don’t say those words lightly.”
The eurozone faced more serious problems, he said, with a lot of member states “moving from drama to trauma”. There are other major signs of a mounting housing crisis. Further words of gloom and despondency, which unfortunately have been the common thread throughout this blog. I have offered both a prognosis and a diagnosis to the current economic crisis and have tried to evaluate the current state of economics. Urgent action is clearly now required within this societal system; but leadership, the required knowledge, or indeed the desire to radically change is sadly lacking. We continue to worship a unfettered market even thought it has abysmally failed and can only continue to fail.
For these reasons, I am concluding this blog and it’s posts to commence a fresh one offering a new economic zone. Hope you have enjoyed at least some of the posts. Thanks for the e-mails. Ivor Timson MSc (Econ)
Ivor Timson 