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ft.com - 7/2/2009
FT.com / Europe - EU faces potential permanent output loss
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Europe is likely to suffer a permanent loss in potential economic output as a result of the global crisis , and government finances will be under pressure for years to come, according to a new European Commission study. “The crisis is the equivalent of capital destruction, reducing – at least ...

Blog Reactions

FT Alphaville:  Lunch Wrap

Across the Curve:  Links

European Tribune:  Grrrrrrrrrr

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Blog Reactions

Lunch Wrap
FT Alphaville — ... at PVM. - PVM rogue update . - Frank Timis, master entrepreneur … - Sovereign ratings: is the UK riskier than China? - Taleb v. Tavakoli, a pixelated post-it update. - In further reading , the man unwinding AIG. - In pink picks ,  the necessity of a punitive Madoff sentence. - And in markets live , tennis, rogue trading and the LSE. On FT.com, - Standard Chartered names John Peace as new chairman . - EU faces permanent output loss. - Chinalco buys $1.5bn Rio Tinto shares.

Links
Across the Curve — Manhattan real estate prices diving. China on the dollar. China on the dollar again. FT on the long lasting effect of the financial calamity on European growth. Professor Hamilton on the shape of the recovery

Grrrrrrrrrr
European Tribune — “Current market disruption in financial markets and the more heavily regulated environment that is likely to follow can also be expected to have a permanent negative effect on potential growth, e.g. through reduced availability of capital for R and innovation activities.” This is from a new European Commission study quoted by the FT but which I have been unable to find so far on the EU website and it makes for depressing reading - not because it warns of yet more Europe.Is.Doomed economic conditions, but because it still considers that unregulated high growth followed by ...

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