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Monday, March 10, 2003

A Dismal Science for a Dismal World: Into the Twilight Zone



Phew, difficult stuff to stomach this, definitely adult reading: but I wish I could fault the reasoning:

As the world moves on a slow-motion collision course with war, the wheels of commerce are grinding to a standstill. Financial markets sense the angst and are hunkering down for the duration. Of course, we’re all trained to look beyond the shock -- to focus more on upside of the postwar climate than on the downside of a prewar paralysis. Yet it seems tougher than ever to make that leap of faith. That’s because this war could either end the uncertainty or compound it. It’s as if we’re caught in the twilight zone between two worlds -- hopeful of a return to a familiar equilibrium but fearful of the pitfalls of a new disequilibrium. That lingering uncertainty is not exactly a comforting outcome for financial markets.
Source: Morgan Stanley Global Economic Forum
LINK

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