Thursday, February 7, 2008

Heightened resistance? Eurozone ‘decoupling’ from US economy will be put to the test

Heightened resistance? Eurozone ‘decoupling’ from US economy will be put to the test

By Ralph Atkins in Frankfurt

Published: February 6 2008 20:25 | Last updated: February 6 2008 20:25

Peer Steinbrück, Germany’s finance minister, regularly generates a laugh when he mocks so-called “Ninja” mortgages – granted in the US to those with “no income, no job or assets”.

The implication is clear: the global financial turmoil was triggered by a problem in the US subprime mortgage market and its effects will be concentrated on that side of the Atlantic.

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