June 2, 2012
World Bank chief warns of 'catastrophe'
Yesterday was the worst day for world markets of the year. The euro zone unemployment rate is at a record 11%. Manufacturing crashed in Great Britain. The jobless rate went up in the US. Emerging economies in Brazil and China are cooling off. And Robert Zoellick, head of the World Bank, is warning of "impending catastrophe" that will mirror the financial crisis of 2008. Daily Mail: Mr Zoellick, who stands down at the end of the month after five years in charge of the watchdog, said it was 'far from clear that eurozone leaders have steeled themselves' for the looming catastrophe amid fears of a Greek exit from the single currency and meltdown in Spain. The flow of money into so-called 'safe havens' such as UK, German and US government debt turned into a stampede yesterday. In Berlin the two-year government bond yield fell below zero for the first time, with the bizarre result that jittery international investors are now paying - rather than being paid - for lending...(Read Full Post)