Debt & PrejudicePosted: May 20, 2010
A good opinion once lost is lost forever
That’s what Mr. Darcy tells us in Jane Austen’s Pride and Prejudice (Chapter 11 for those of you who want to check). That’s probably a good way to describe the current way markets and investors are seeing the Euro and the Eurozone.
After the crisis in Greece, nobody will want to lend any money to Greece, leaving it no choice but to turn towards those that cannot turn away : Europe ; after that, the same doubts will be cast on Portugal, Spain, Italy, … and confidence in the whole European economy will be lost.
As it seems, this confidence can be lost for a long time, even more since European Leaders really don’t manage to find a comprehensive and coordinated response to the crisis.
Of course the all point of Austen’s story is that, a once thought lost forever, good opinion can be gained back again…