The AFP reports on the interview the governor of the Bank of Spain held with El Pais on Sunday: “The governor of the Bank of Spain on Sunday issued a bleak assessment of the economic crisis, warning that the world faced a “total” financial meltdown unseen since the Great Depression.
The article goes on to confirming how there is a total lack of confidence which is resulting in a vicious circle: “The lack of confidence is total… consumers are not consuming, businessmen are not taking on workers, investors are not investing and the banks are not lending.”
Nevertheless, the article doesn’t give any enlightenment into any magic solution, simply putting “confidence” at the top of the list of reason why there is a downward spiral: “”There is an almost total paralysis from which no-one is escaping,” he said, adding that any recovery — pencilled in by optimists for the end of 2009 and the start of 2010 — could be delayed if confidence is not restored.”
Image by jessicafm under Creative Commons.
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