‘The World Is in Trouble’

Deutsche Bank’s chief economist Norbert Walter sounds very scared, proclaiming “The world is in trouble” and “2010 could be a worrisome year.” Why?

The rescue packages brought on have been so costly for so many governments that the exit from this fiscal policy will be very painful, very painful indeed. Some of us are already talking about a W-shaped recovery. I’d probably talk about a triple-U-shaped recovery because there are so many stumbling blocks here to get out of this…

I’m deeply worried about the worries of those investors who have invested a lot, really a lot into the dollar… If they have second thoughts about the quality of this currency then the dollar is bound to weaken.

Posted by James on Sunday, August 16, 2009