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Now it's Europe's turn, but there's no joy in the US

Business Times - 13 May 2010


Now it's Europe's turn, but there's no joy in the US

By LEON HADAR
WASHINGTON CORRESPONDENT

IN THE aftermath of the collapse of Lehman Brothers and the ensuing meltdown on Wall Street, some Europeans took a certain pleasure over the economic mess across the Atlantic.

French commentators suggested that the US financial crisis highlighted once again the structural flaws and the moral failings of the Anglo-Saxon economic system (as opposed to the more statist version practised in France). The Germans contrasted their more conservative social market model with the free market principles guiding policymakers in Washington.

And the European Union's technocrats were more than willing to dispense constructive advice to their colleagues in Washington while expressing initial (and very brief) sense of confidence that the growing troubles facing the US economy were not going to spill over into Europe.

In fact, some analysts predicted that the US econom…