The Hill News

In 2007, Federal Reserve Chairman Ben Bernanke spent most of the year reassuring markets that the U.S. sub-prime mortgage loan problem would be contained. In an all too similar a manner, ECB President Jean-Claude Trichet now keeps asserting that Europe’s sovereign debt crisis does not pose a significant threat to the overall European economy let alone to the global economy. U.S. policymakers would do well to disregard Mr. Trichet’s sanguine remarks and brace themselves instead for a European economic tsunami that is all too likely to seriously derail the fragile U.S. economic recovery.

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