Reuters: The loss of market confidence in economic leadership in key countries like the United States and Europe (since when did Europe become a country?) coupled with a fragile economic recovery have pushed markets into a new danger zone, something that policymakers have to take seriously (so the trillions policymakers have already spent were spent un-seriously? policymakers must have been playing games till now if they are now being told to take things seriously!), the head of the World Bank said on Sunday.
Speaking at the Asia Society dinner in Sydney, Robert Zoellick also said the global economy was going through a multi-speed recovery, with developing countries now the source of growth and opportunity.
"What's happened in the past couple of 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," he said. (It is not what has happened the last couple of weeks that matters but what has been happening the last 40 years since Nixon severed the link between Gold and the dollar).
"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 ... so that policymakers recognize and take it seriously for what it is."
Zoellick said the process of dealing with the sovereign debt problem and some of the competitive issues in the euro zone have tended to be done "a day late", leaving markets worried that authorities may not be ahead of the problem or moving in the right direction.
Making lame excuses is how I would characterize this report but the warnings are now being given for the PTB know what is coming: a complete meltdown of the Global Economy. So they send their henchmen to supply lame excuses as to why it is happening and to prepare their insider buddies to profit from the chaos. The public is generally kept sedated by entertainment to be aware of what is going on.