A "Crisis of Confidence;" a Crisis of Confidence in what?
Not the markets--that's just a symptom or result. What we're really talking about is a systemic crisis of confidence in governments—primarily in the U.S. and Eurozone. Tripped up by globalisation - FT.com --
Among the key points made by Jeffrey Sachs:
Neither the US nor Europe has even properly diagnosed the core problem, namely that both regions are being whipsawed by globalisation.
Jobs for low-skilled workers in manufacturing, and new investments in large swaths of industry, have been lost to international competition
The path to recovery now lies not in a new housing bubble, but in upgraded skills, increased exports and public investments in infrastructure and low-carbon energy. Instead, the US and Europe have veered between dead-end, consumption-oriented stimulus packages and austerity without a vision for investment.
The full article can be found at: http://www.ft.com/cms/s/0/2b9dab2e-c817-11e0-9501-00144feabdc0.html (registration required)