Earth calling the ECB
In today’s FT we learn:
- The IMF thinks that Eurozone banks may have far more severe losses on sovereign debt than they have reported.
- Eurozone unemployment is rising but inflation is stable.
- Portugal is passing even tougher austerity measures and the economy is expected to contract next year. Debt to GDP will rise to 106%.
- In Italy the government is rapidly losing credibility and the economy is becoming even more unstuck.
- Greece’s fourth largest bank has sought emergency liquidity support.
All of which begs the question – what on earth was the ECB doing raising interest rates this year???
(Having trouble with links – will add later)