Bond Outlook February 6th

If Europe and Japan authorities are reluctant to follow the same path their US counterparts, are we really moving towards serious rebalancing, even if via a shared recession?

Bond Outlook [by bridport & cie, February 6^th 2008]

Fellow members of the G7 are resisting the USA’s request to stimulate their economies along the lines of its own tax and interest rate cuts. This may reflect two views of the USA emerging among the authorities of the “Rest of the World”:

“This mess is of your creation. Don’t ask us to follow you down the path of still more irresponsibility”
“It is high time to correct the world’s economic imbalances.