Deutsche Bank have released their World Outlook for midyear 2010, and it describes a global economy in conflict.
They can’t seem to decide whether we are headed for a slowdown or a dramatic increase in U.S. employment and a proper return to growth.
The conflict is reality, however. There are some indicators in Deutsche Bank’s report which would suggest the U.S. about to surge, and others that show a slowing.
It’s uncertainty that reigns in this choose your own adventure economy, and DB doesn’t seem to know what’s next.
They do, however, say we are going to avoid a double dip, even though there are plenty of downside risks. Two of those downside risks are particularly worrying to Deutsche Bank.
Indeed, concerns about government solvency could eventually materialise in the US and Japan, if the authorities there were seen increasingly as unable to deal with the fundamental instabilities in the projected debt ratios of these countries.
Business Insider Emails & Alerts
Site highlights each day to your inbox.