With all the attention over the past year on Greece and its debt, it’s interesting that a Greek Goddess is now being used to explain a potential outcome for the European economy.
Blackrock, in its 2012 Outlook, described its worst case scenario for this year as follows:
“If the European debt crisis were to spin out of control, it would likely plunge Europe into a deep recession that would spread to the rest of the world, including China. The result would not be a simple addition of problems, but a multiplication. It could be bad because the developed world has used up much of its firepower to fight another credit crunch and deep recession.
We call this scenario Nemesis, after the Greek goddess who wreaks havoc and vengeance on the prideful. Some would argue creating a European Monetary Union without a fiscal union was an act of hubris with punishment long overdue.”
~ Brooks, Hughes & Jones, Partners in Wealth Management, Tacoma, WA