World Market Rout Is a Loud No-Confidence Vote in Global Leadership
Global markets have issued a vote of no confidence in the management of the world’s two largest economies, the U.S. and the euro area. To regain credibility, leaders on both sides of the Atlantic need to recognize the magnitude of the crisis they face.
The outlook reflected by the market rout is not encouraging, coming as it does after European and U.S. officials thought they were doing enough to fix their similar -- and overlapping -- fiscal problems. The U.S. is growing at a rate too slow to withstand a serious shock, and that shock could easily come from Europe’s resurgent financial crisis. So far, politicians’ efforts have been far too timid to convince the world that they have the situation under control.