Geithner Says Europe is Worse Than Japan

The dark clouds looming above Europe may be even more ominous than people realize.

Former U.S. Treasury secretary Tim Geithner fears embattled Europe faces a long slog ahead which could be even worse than Japan’s long period of lost growth.

“They’ve got a terribly tough, long road ahead of them,” Geithner said on Tuesday, while speaking at The Economist’s Buttonwood Gathering in Manhattan.

Since the early 1990s Japan has struggled to escape a depressing spiral of nonexistent economic growth, falling prices and mounting debt. Initially known as the “Lost Decade,” Japan’s nightmare has actually lasted over 20 years.

Geithner went so far as to say that Europe would actually be “lucky” if it suffered Japan’s fate.

That’s because Japan’s per capita income growth and unemployment rate weren’t as dire as what some European countries are facing currently.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza