Leading City experts have started raising the prospect of "Great Depression II" amid worries that the European economic crisis could trigger a deeper bout of chaos.
The Telegraph, 21 May 2010
Markets on both sides of the Atlantic dipped to fresh lows as fears surrounding the fate of the euro project transmuted into worries about the wider global economic system.
Bill Gross of bond fund Pimco said that hedge funds were starting to liquidate their positions in a bid to preserve their capital a worrying "mini relapse" towards 2008 territory.
Andrew Roberts, head of European rates strategy at RBS said "Great Depression II" could now be approaching, adding: "It now has potential to speed toward its conclusion; a European $1trn package which does little and political panic tells you we are about to reach the end of the road. The world should be discussing deflation, not inflation."
