This post is a guest contribution by Asha Bangalore, economist of The Northern Trust Company.
The European bailout, late but inevitable, is a package bearing imprints of largesse from the entire world. The Petersen Institute of International Economics estimates the setback that each country will experience (see table below). The numbers are more than a pittance and the pinch occurs in the midst of several of these altruistic nations facing crises themselves.
Table 1 is a list of the cost of the European bailout but the true picture of debt is a complicated matrix of debt ridden industrialized nations hoping to solve the current economic challenges by a combination of economic growth and a likely scenario of higher taxes and/or cost cutting measures.
Click here or on the table below for a larger image.
Source: Asha Bangalore, Northern Trust – Daily Global Commentary, May 14, 2010.
