Even the good news is bad news
It is hard to see a route out of euro crisis
By R.A. | WASHINGTON
THERE are continued signs today that the recent market placidity in Europe is not proof the crisis is over. Begin with this Reuters piece, with the encouraging headline, "Eurozone shows further signs of recovery". Splendid! Only:
Markit’s Eurozone Composite PMI, based on business activity across thousands of companies, and a good gauge of economic growth, rose in January to a 10-month high of 48.6 from 47.2 in December – an improvement on the preliminary reading of 48.2.
While still below the 50 mark that divides growth and contraction, where it has been since February last year, it has risen for the third straight month.
More from Free exchange
Religious competition was to blame for Europe’s witch hunts
Many children are still persecuted as alleged witches in Africa for similar reasons
Has BRICS lived up to expectations?
The bloc of big emerging economies is surprisingly good at keeping its promises
How to interpret a market plunge
Whether a sudden sharp decline in asset prices amounts to a meaningless blip or something more depends on mass psychology