Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

The CEO of the world's largest bond manager said balance sheet issues will cause Europe to be "a slow-motion wreck" that will cause crises in "Ireland, then Portugal, then Spain, then Belgium, then Italy."

"The first rule of crisis management hasn't been met by the Europeans: and that is to get ahead of the crisis ... "As long as they're being seen as reactive, we're going to have a slow-motion wreck going on in Europe....

[b]The problems in Europe have roiled world markets and essentially counteracted the Federal Reserve's moves to pump money into the economy by buying Treasurys.

Instead of the dollar weakening that would be expected to follow the Fed's $600 billion quantitative easing action, the US currency has strengthened against the euro. That in turn has pressured US stocks, which opened lower Tuesday.