Market doubts about the euro focus on Europe`s ability to rein in fiscal excesses at a time of slow growth and high unemployment, and a growing gap in economic competitiveness between northern and southern Europe.
In Greek mythology, Sisyphus was condemned to roll a boulder to the top of the hill, only to see it roll all the way down again. It looks as if the eurozone will be carrying its Sisyphean burden for a long time.
The recession in the eurozone will have a serious fallout for India and weaken growth further. It is important therefore that the Europe factor is adequately counterbalanced by domestic measures in order to regain the momentum reached earlier.
The October roll-out of Apple`s iPhone 4S boosted its position in Britain and United States, but the new phones failed to excite interest in continental Europe, where Apple`s share of the fast-growing smartphone market slipped.
The euro was on the defensive against the dollar on Thursday, having shed all the week`s gains as investors doubted a massive 489 billion euro tender by the European Central Bank would solve the EU debt crisis.
The wealthiest Americans have collected the bulk of the past three decades’ income gains. The share of national income of the richest 1 percent more than doubled between 1980 and 2008 from 8 percent to 18 percent.
In granting the EFSF the all-important triple-A rating, the rating agencies were somewhat cautious. They weren’t willing to assume, as they did with subprime mortgages, that any subset of debt guarantees—no matter how small—made by countries that weren’t themselves triple-A rated would be worthy of the gold-plated standard.
Europe is perched between chaos and catharsis, as the political dramas in Athens and Rome reach crisis point. One path leads to destruction; the other rebirth. Though there are signs of hope, a few more missteps will lead down into the chasm.