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Wednesday, July 18, 2012

Global Economy: Crash or Gradual Slowdown?

What happened to the world economy?
What happened to the world economy? (Photo credit: diwong)
The debate over whether the world’s economy is facing a dramatic crash has gained traction in recent weeks, as the euro zone debt crisis continued to dominate headlines and worries about other major economies like the U.S. and China grew. Bearish forecasts from people like hedge fund manager Hugh Hendry and “The New Depression” author Richard Duncan have grabbed attention. But there are still many who believe that the world is facing gradual change rather than the rapid tumble of a crash. "This isn’t a crash in a conventional sense, but a structural down-move in global growth. It’s a new and lower trend," Paul Donovan, deputy head of global economics at UBS Investment Bank, told CNBC’s “Squawk Box Europe”Wednesday. "We are going through one of the biggest structural changes that we have seen in the global economy since the 1971-73 process." ... Continue to read.
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