The global economy is facing a meltdown, according to World Bank President Robert Zoellick. “We are moving into a dangerous period,” Zoellick said to Bloomberg Television at a Singapore interview. The likelihood of an American recession is made increasingly likely by the danger of an economic implosion in the euro zone.
“I believe the U.S. will have slow growth, I don’t believe it will move to a double dip, but these things are very hard to predict because if you have events trigger uncertainty in Europe, that will flow back to the U.S.,” Zoellick noted, mentioning that the success of the euro zone “depends on the political decisions moving forward.
He added: “Sometimes people hope that you can muddle through by providing financing and liquidity, in the case of Europe, from the European Financial Stability Facility or the European Central Bank.
Click here to read the entire article.