Thursday, December 22, 2011

PIMCO sees slow global growth in 2012


PIMCO Cyclical Outlook: Deleveraging, Austerity and Europe’s Potential Minsky Moment
The year ahead will likely be very challenging for the global economy. Growth faces several hurdles that we believe collectively will impose a sense of greater uncertainty and increased volatility on financial markets. These hurdles include the need for accelerated balance sheet deleveraging, slowly creeping but surely rising risks of financial and economic de-globalization, and the constant drum beat of re-regulation, particularly in developed country banking systems.
Read the rest of the PIMCO report by Saumil H. Parikh

Nice to see Minsky and debt deflation being mentioned, even if briefly.

PIMCO sees the EZ as the focal point in 2012.

3 comments:

Matt Franko said...

Tom,

I think PIMCO's McCulley, now retired, coined the term "Minsky Moment" itself, so this guy may be picking up where McCulley left off.

Our economic lives are simply reduced to a periodic series of chaotic "Minsky Moments" if we do not take proactive counter cyclical measures with fiscal policy.

Resp,

Tom Hickey said...

It's a pretty good post, Matt, other than a slip or two, e.g, about rising US public debt. But on the whole, pretty savvy. Maybe McCulley had an influence at PIMCO. Seems like the author is "new blood."

paulie46 said...

"…slowly creeping but surely rising risks of financial and economic de-globalization, and the constant drum beat of re-regulation, particularly in developed country banking systems."

This doesn't sound to me like he's on the right track, unless I am mis-reading