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Eurozone Debt Crisis: OECD Warning On European Recession

November 29th, 2011

The Organisation for Economic Co-operation and Development has revised its economic forecast for the Eurozone and the UK. In both areas, the OECD is predicting negative growth in Q4 of 2011 and Q1 of 2012. Two consecutive quarters of negative GDP growth meets the technical definition of a recession. Other economists believe that the Eurozone, United Kingdom and the United States have already entered a double-dip recession.

As the global economic crisis worsens, the debt crisis metastasizes and more and more sovereigns are having their public debt downgraded by the ratings agencies, the equity markets are soaring again. Why is that happening, when global economic and financial fundamentals are so rotten? It appears that a false rumour that the IMF was going to bailout Italy from its suffocating public debt was the catalyst for the stock markets to rally strongly. Even when the report was officially denied, the equities maintained their climb. It must be that equities reside in a parallel universe, devoid from the inconvenience of fiscal, financial and economic reality.


Officer Larry of the NYPD is on his way to Zuccotti Park in lower Manhattan to arrest peaceful protesters involved with the Occupy Wall Street movement. Being a public spirited member of the New York Police Department, Officer Larry does remind us that there is a global economic crisis underway that rivals the Great Depression of the 1930s.

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