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.