Our team has always kept a close eye into statements of personalities and institutions as we strongly believe that there could be a lot of readings derived from such statements and comments.
This doesn’t mean that we take granted them as they speak. It is not accepting as they give but it is the interpretation, with keeping in mind various other factors.
More than few times we have noticed contradicting statements/comments from same inst/personality or diff inst/personality of a govt. This exercise thus also becomes fun for many reasons.
We have also been amazed from a complete change of tone of some RBI governors after they retire from the official post.
Yesterday, the US Federal Reserve Chairmen Ben Bernanke gave following comment on the prevailing Europe crisis:
European leaders are committed to ensuring the survival of the euro and have enough money to meet obligations of heavily indebted member countries.
$1 trillion package is a lot of money to cop up with the problem.
Investors were not yet convinced Europe's debt problems would be resolved.
More European rescue money may be needed.
European leadership is strongly committed to doing whatever is necessary to preserve the euro, preserve the euro zone, preserve the European project, and avoid financial problems that would certainly arise.
He also said the US economy appeared to have enough momentum to avoid a "double-dip" recession, citing strengthening consumer and business spending.
There are some signs the private sector is picking up the baton.
Pace of USA economic recovery is moderate.
The depth of recession is big.
Employment will rise only slowly for now.
All in all there is not much to decipher from the comments.
The comments on USA situation is not different than previous comments and Obama's remarks.
The endorsement that Europe Package is sufficient is a noticing one as well as comment on Europe's leadership's thrust to preserve European project indicates his close involvement in the developments of post Greece crisis unveilment and recent Hungary etc. revealition.
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