Published with permission from Knowledge @ Wharton , Wharton’s online business journal. Concerns about Europe continue to drag down capital markets in the United States, which had begun to recover earlier this fall after a bitter congressional debate over the debt ceiling and a subsequent credit d…
Morningstar director of economic analysis Bob Johnson addresses recent sluggishness in the economy and makes the case for better growth in the second half of the year.
While liquidity may provide temporary relief, only debt reduction--and a creditor haircut--will put Europe back on the road to growth, says TCW's Komal Sri-Kumar.
Germany is hitting negative sovereign yields, while Spanish regions and banks seek financial assistance from their parent country, which needs a bailout of its own.