Ann Pettifor: September 24, 2009
As world leaders meet in Pittsburgh and then Istanbul (for the World Bank and IMF meetings) expect much self-congratulation and back-slapping for having got the world through the post-Lehman crisis.
But behind the cacophony of self-praise, watch out for three alarms flashing red:
- The escalating foreclosure and rising mortgage delinquency rates in the US
- The dramatic contraction of credit in the US over the summer – putting paid to any hope of the US acting as the ‘engine’ of a global recovery
- That big accident waiting to happen to the European economies –Spain
With the help of a great new book – about to be published in the US – let’s take a look at why there is no room for complacency.
“No way to run an economy” (Pluto Press, 2009) is by a man whose research and analyses I have come to respect and rely upon – Graham Turner of GFC economics. While the book is full of solid facts and data – it is eminently readable for those prepared to unleash their inner wonk.