What the Pros Say: Swap Jitters, Bottom Searches
The global coordinated rate cut won't stop the recession, said Paul Donovan, senior international economist at UBS.
"At some point too, even policymakers are going to have to accept; 'look we've put in place enough but we've had to pay for the massive stuff ups of the last decade.' And that's going to mean substantially higher unemployment, it's going to mean significant losses in pension funds.It's going to see massive losses in confidence right around the Western hemisphere, and increasingly it seems in parts of Asia as well. We're going to have to pay for it and as we pay for it, I think we're going to see stock markets selling off," James Shugg senior economist at Westpac Bank said.