Thursday, 20 December 2007
ECB: Is There A pilot In The Plane?
"As regards economic activity, incoming information confirms the sustained nature of economic expansion in the euro area, with real GDP growing by 0.7% quarter-on-quarter in the third quarter, while indicating some moderation in the fourth quarter."
"Overall, the economic fundamentals in the euro area remain sound. Looking ahead, Eurosystem staff projects annual real GDP growth to lie between 2.4% to 2.8% in 2007, between 1.5% and 2.5% in 2008, and between 1.6% and 2.6% in 2009. "
"This scenario is based on the expectation that the global economy will remain resilient, with the slowdown of economic growth in the United States partly offset by the continued strength of emerging market economies."
"However, in view of the potential impact of ongoing financial market volatility and re-pricing of risk on the real economy, this assessment remains surrounded by a high level of uncertainty. And in the Governing Council’s view, the risks surrounding this outlook for economic growth lie on the downside."
So if I try to read Mr Trichet's mind, that would be like that: Trichet in front of the parliament:
"Damn it feels uncomfortable to be in front of those politicians, they just spent their energy to keep power and be reelected... and it's damn hot here..."
"Well how is the economy...not good boy not good...we had to print like hell Euros, billions of them, to covers the A*S of those brainless bankers...we even run out of ink just ... "
"Yeaaar..next year we will grow at potential, damn if they just know that we are in deep trouble. On one hand the real estate explosion that we are going to witness in all corners of Europe..to that the raging inflation from the Baltics...we are losing the battle..."
"what? indeed the European economy sounds good...I rather prefer be somewhere else and have some Martini to forget our misjudgments during 2002...I should never have listen to this damn phone call from Alan...Deflation he was saying....no worry no housing bubble...."
"the risks surrounding forecasting is to the downside on the outlook to the downside economical risk...just hope they don't understand what I'm talking about..after all it's all psychology...maybe i should just tell them...we are in deep Sh*t..."
Source: ECB, Hearing in front of the Parliament.