Impact of European financial crisis resembles 2008
The fall of Lehman Brothers sent reverberations through the global economy that sparked a recession and a plethora of regulatory reform. Nearly four years later, the inability of European leaders to adequately address the debt crisis could result in similar circumstances. The US economy is stagnant, China is showing signs of a slowdown and the European Union is teetering on the edge.
The Bank of International Settlements, in fact, says that global lending is contracting at a pace not seen since 2008.
To some, Europe is in denial about the extent – and dangers not acting aggressively – of the crisis. Writing in the London Telegraph, columnist Janet Daley maintains they are simply in denial.
Others are more delicate, but no less damning, in their analysis of the path ahead.
“To date, Europe’s leaders have been trying to muddle through the crisis; some have even suggested that muddling through is the best that can be hoped for. But Mr. Draghi is right: we’re reaching the point where politicians have to stop muddling and start getting through,” said a June 2 Washington Post editorial.