Euro and Eurozone update

8/5/2011

Following on from Vistage economist Roger Martin-Faggs last article on this blog  on the Euro and Eurozone, which is proving to be very accurate,  please find his postscript below in light of the events of recent days. 

"The Footsie is 5400 as I forecast it would be in January. The markets have just realized that the global economy is slowing down rapidly, again as forecast.  All this is no surprise to Vistage members; the supply of bank credit is insufficient to maintain growth in the West. The Euro system is unsustainable, Greece will default, they have just realized. Double-dip by the end of the year, my forecast will have been just three months out!!  There will be calls for more quantitative easing, but this has no impact on household real incomes which continue to decline. We must hope the oil price drops to $70 and stays there for at least 9 months, then things will pick up a little."

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