Author: Colin Barr
First published: Fortune, CNNMoney.com, 03/12/2010
When George Magnus talks, you’d do well to listen.
…..I spoke with Magnus this week about the euro crisis, America ’s response to its economic problems (including growing older) and the nature of the troubles facing China, which he says are widely underestimated. Here are some excerpts.
Fortune: What do you make of the euro crisis?
Magnus: It’s a right old mess. The problems really start with the banking sector, and they’re the same problems as we had in 2008. But the way we dealt with that crisis simply put it on slow burn. Banking liabilities became contingent liabilities of the sovereign, and now there is no investor confidence that the sovereigns will be able to pay up. It’s extremely messy and is starting to look quite dangerous…. more
