Global Recovery Still on Track, Despite Angst
"At an annual Federal Reserve retreat, angst, not panic, was the order of the day among officials and economists chastened by a deep recession and a disappointing rebound. "We'll slog our way through this," said Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, which sponsored the symposium, summing up two days of presentations, discussions, dinner-table conversation and hiking.
Several foreign central bankers said they were struck by the unusual degree of pessimism they had witnessed in the U.S., a contrast to typical American optimism. "I can't wait to get back to my side of the world," said Alan Bollard, governor of the Reserve Bank of New Zealand. Growth in New Zealand, seen at around 3% this year and next, has been underpinned by strength in Australia and China."
~From today's WSJ article "Global Recovery Is Still Seen On Track, Despite the Angst"
1 Comments:
The fact that much of the rest of the world is doing better than the US at this point in time is not a surprise. Many central banks took steps that allowed the liquidation of bad assets and many governments refused to play the stimulus game to the same level. Those that did (think China) may have avoided a correction but are looking at a possible burst of their own bubbles some time in the near future or lower growth until the excesses can be washed out of the system.
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