Economist editorial.
Remember the now dated analysis that predicted a V-shaped recovery for the New Core and more of a U for the Old Core?
With China in the lead, and risky a bursting of its real estate bubble, the New Core still seems to spell V for victory.
Now the latter diagnosis is broken down further to say the sovereign debt crisis triggers a W (double-dip) for the EU while the US doesn't seem--for now--to be in that danger zone.
Still, our U feels like a U--hence the temptation to consider more stimulus.
But hard to complain about the global recovery: a bit more than 5% growth currently.
Concluding thoughts:
The world is nervous for good reason. Although the fundamentals are reasonably good, the judgment of politicians is often unreasonably bad. Right now that is what poses the biggest risk to the world economy.
Same old, same old.