But today it could happen anywhere; for example in China. It seems that counterparty mistrust among financial institutions reached extreme levels in China last week, where so called Shibor, or the Shanghai Interbank Offered Rate, has been surging.
Let\'s be clear. We\'ve intentionally blown the biggest government bond bubble in history … We need to be vigilant to the consequences of that bubble deflating more quickly than [we] might otherwise have wanted.
It is interesting as, on the one hand, there is France calling for more centralization and more common policies on the EU level, and on the other hand, President Francois Hollande is able to say: \"The European Commission cannot dictate us what we have to do.\"
International Monetary Fund head Christine Lagarde said the U.S. government’s debt reduction plans are too abrupt, which could cause the U.S. economy to contract by over one and a half per cent.
In recent months, economic confidence has worsened and unemployment has risen over 12 percent across the currency zone. But the real problem is youth unemployment.