Summary
JUST when we thought all was well on the global economic front, along comes Greece with its sovereign debt default. Are we in crisis mode again?
TRYING TO FIGURE OUT THE tailspin of the world's major share markets on May 7, 2010? Here's a tip: don't. Better still, don't even bother. Why? It's the herd. Again. And the herd does not always make sense. Its psychology isn't based on a rational choice theory. This herd is the old one that former US Federal Reserve boss Alan Greenspan once dubbed `irrational exuberance'. The world economy was coming back - and only just - from the global financial crisis. And when big corporations started making huge profits again, the share markets went up with confidence that we'd turn the corner from a potential ugliness the likes we'd never seen since the 1930s. Risk aversion took a backseat to risk takers.See the full content of this document
Extract
Sordid Mess
But they took their eyes off the ball - Greece. And Spain. And Portugal. And Ireland. In fact, the whole of Western Europe. These economies weren't bouncing back the way the US economy was said to have stepped away the precipice. US gro...
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