Thursday, 3 September 2009

From the Finnish Illusion to the Pragmatic ECB

Forget the Finnish Banks forecast(or Swedish or Danish since they are clearly the biggest player in the Finnish market) since it is biased, unreliable and had a very poor track record (something that people tend to forget over time).

Instead I will advise to seek an independent view, through the voice of Mr Jean-Claude Trichet, the president of the European Central Bank (ECB).

Here is what he had to say and doesn't need any further comment on my side, as it describe the current situation in a very crystal clear manner, in a non confusing way and not targetted at fooling the common here it is :

Uncertainty is very high,” Trichet said. “It’s a bumpy road we have ahead of us. Prudence and caution are still of the essence.”
The ECB today raised its economic forecasts for the 16- nation euro region to predict growth of about 0.2 in 2010 instead of a 0.3 percent contraction. In 2009, the economy will shrink about 4.1 percent, less than the 4.6 percent contraction predicted three months ago.

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