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Bloomberg reported Eurozone capital flight. In the 12 months ending July 31, 326 billion euros exited banks in Spain, Greece, Portugal and Ireland. They moved mostly to lenders in Germany, France, and five other core European countries.
French manufacturing was hit hard. Its PMI diffusion index sunk to 42.6. Japan reported August exports down 5.8% year-over-year.
Dallas Fed President Richard Fisher said all QE III will do is keep inflation expectations elevated while doing little or nothing to create growth and jobs.
Overall conditions look much like fall 2007. Only this time, what good will massive monetary easing do when everything done so far failed?
At the same time, it led to reckless speculation ahead of what Simon Johnson and Peter Boone call a "doomsday cycle" of shocks, collapses, and more bailouts.
Europe already is troubled. Don't look there for help or to Brazil and India. World economies are either slowing or already in recession. Markit Economics provides reliable independent data. Its chief economist said this about Europe:
"The Eurozone downturn gathered further momentum in September, suggesting that the region suffered the worst quarter for three years. The flash PMI is consistent with GDP contracting by 0.6% in the third quarter and sending the region back into a technical recession.""We had hoped that the news regarding the ECB's intervention to alleviate the debt crisis would have lifted business confidence, but instead sentiment appears to have taken a turn for the worse, with businesses the most gloomy since early-2009 due to ongoing headwinds from slower global growth."
"This gloom is clearly reflected in headcounts falling at the fastest rate since January 2010 as companies seek to adjust to weaker demand.
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