Blogs & Comment

Economic shocks and collective rage

Theprotests in Europe over pension reform bear watching, notes Kevin Press in Todays Economy Blog. If political pressure blocks the austerity programs before theyre able to accomplish what theyre designed for, well be left with the worst possible scenario in the region: ballooning deficits without the benefit of stimulus spending to boost the national economies. That could further stall the global economic recovery.
Ive been watchingsince the sovereign debt crisis flared up in Europe. As Simon Schama, a historian of the French Revolution, wrote in an May edition of the Financial Times, historical evidence indicates there is usually a lag between economic shocks and the expression of collective rage in an organized manner. The pension protests in Europe seem to be one manifestation of this. Another, warns Tony Boeckh in The Boeckh Investment Letter,could be the Tea Party movement in the U.S.