Part of the growth problem is that Germany insists other euro zone states must pursue the kind of structural reforms that helped it regain competitiveness in the last decade, even if these risk sending weaker economies into a deflationary spiral. "To overcome the crisis, there is no way around strict consolidation and structural reforms in the member states," Bundesbank President Jens Weidmann said late on Tuesday. ... Financial market participants say they are more concerned about the absence of growth in the euro zone than about budget deficits and public debt levels now, because growth is what will enable countries to service and repay their debts over time. "It looks like the LTRO is having a positive contribution. Does it solve all of the problems sustainably? Probably not," said Andrew Bosomworth, a senior portfolio manager at Pimco. "At the end of the day, it comes down to growth -- that's what these countries need to keep their debt sustainable."
"To overcome the crisis, there is no way around strict consolidation and structural reforms in the member states," Bundesbank President Jens Weidmann said late on Tuesday.
...
Financial market participants say they are more concerned about the absence of growth in the euro zone than about budget deficits and public debt levels now, because growth is what will enable countries to service and repay their debts over time. "It looks like the LTRO is having a positive contribution. Does it solve all of the problems sustainably? Probably not," said Andrew Bosomworth, a senior portfolio manager at Pimco.
"At the end of the day, it comes down to growth -- that's what these countries need to keep their debt sustainable."
Still, it would have helped if people like Bosomworth had mentioned growth last year instead of allowing austerity to dominate the discussion...
Here's one example, it gets worse the further back you go...
http://articles.businessinsider.com/2011-06-13/markets/30099802_1_uk-government-spending-economic-gr owth
Bill Gross has been particularly weird, swinging from suggesting the USA had a debt problem and was going to "collapse like Greece" a year ago or so to now signing up for Keynes...
The inconsistency has been fatal because they've always provided right-wing politicians with just enough cover to continue with austerity.
Pimco have been very inconsistent, like many analysts and ratings agencies...
Making money of volatile prices? A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
