MARKETS OVERLOOK GREXIT FEARS
This week has been dominated by the ongoing farce in Europe; with agreements, last minute collapses, accusations and ultimatums all featuring. As a piece of theatre it has been highly entertaining, but as diplomatic and economic policy making goes, it has been absolutely horrific. Sticking with a theatrical analogy, Germany appears to be playing the role of the mad king; the austerity agreement it is so keen on enforcing, which has been widely denounced by economists, will see real cuts of 9 to 10 percent of GDP on an already weak Greek economy. Analysis by economist Paul Krugman showed this was harsher than the reparations forced on Germany after World War One. Read More….