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Trichet Says Global Economy Is Near Turning Point (Update1) - Bloomberg.com
"As far as growth is concerned, we're around the inflection point in the cycle, that's the sentiment," Trichet said today at a press conference at the Bank for International Settlements in Basel, Switzerland. A number of recent reports are "encouraging, but it's no time for complacency."

...

"Insistence is put on the exit strategy, on the medium- term path that permits us to go back to a normal situation, a sound and sustainable situation," he said. At the same time, central banks will "do what is necessary in terms of extraordinary measures, as long as necessary," he added.

What does he mean going back to a sound and sustainable situation? Did the crisis fall out of the sky or was there an unsustainable bubble situation?
"There is a general sentiment, as regards a number of risk premia, a number of features such as spreads" that "we came back to the pre-Lehman situation," he said. "It's particularly true when you concentrate on money-market spreads."
So now the pre-Lehman situation, the 12 months of seized markets, liquidity and credit crunches, etc from September 2007 to September 2008, is good enough?

The brainless should not be in banking. — Willem Buitler
by Carrie (migeru at eurotrib dot com) on Mon May 11th, 2009 at 08:56:05 AM EST
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