Quote Originally Posted by Papewaio View Post
So the only thing that might save the world is if China develops a larger middle class...
I guess it's already pretty large. It seems as if the days of cheap Chinese labour will soon be over.

But before that we all have to face the crunch. Italy and Spain seem uniquely wobbly these day because the bond market is dull, everybody is waiting for the implementation of the euro rescue plan. So if someone walks into the trading room saying "I've got a couple of Spanish bonds here that I'd like to lose fast", the whole floor is up in arms: "There goes Spain!"

From the Frankfurter Allgemeine to Le Monde to The Telegraph the sentiment seems to be the same: this problem is much deeper and wider.

Quote Originally Posted by Telegraph
[...] it is difficult not to be unnerved by what is going on in the markets. We all know at heart that the debt burden of the developed world is unsustainable. By convention, the political classes and the markets take August off, and leave others to have a crisis. But this financial crisis is beginning to look ominous, as if a corrective spasm is approaching.
AII