Euro

Fears of financial Armageddon proliferate as the global economy stutters, investors abandon hope and the euro teeters on the brink of collapse.

“This was the week that investors abandoned all hope,” the Financial Times dramatically reported on Friday. “Fears of a new credit crunch caused share prices to plummet on both sides of the Atlantic,” the Guardian wrote, ”as fragile banks struggle to raise funds in financial markets.” As a result, the shares of some of Europe’s largest banks fell to their lowest point in two years, while those of US banks fell back to levels unseen since the collapse of Lehman Brothers.

US borrowing costs fell below 2 percent “for the first time in at least 60 years,” as investors, wary of stagnating global growth and a renewed financial meltdown, scurried into traditional safe havens like gold, Swiss francs and treasuries. “There is a serious concern that you are going to get recession sooner or later,” said Jim Reid, credit strategist at Deutsche Bank. “It is a phenomenal period in history.”