According to Dent the Demographics effect is about to kick in. Dent predicts S&P to fall 30-50% in 2012.
Jim O’Neill of GS is slightly more positive, and expects the market to go up 20%. Two rather different views below;
So, 2012 has just started. We are back to reality, and soon many Europeans will realize how bad things actually are. We have focused on Italy lately, but let’s not forget about the other countries of PIIGS.
Meanwhile, Portugal is feeling the pain. With the Portugese economy in free fall, tensions are building within the unemployed. Latest on the brain drain out of Portugal, the prime minister is urging people to emigrate in order to find a job. From Al Jazera;
The decision to leave one’s country “is not easy, it’s painful and difficult, and people don’t emigrate just because some political leader says they should,” said Peixoto, who described Passos Coelho’s remarks as “odd for a prime minister to make”.
Ana Maria Gomes, a member of the European Parliament, said that when she heard what he said, “I felt furious, because that is the last thing a prime minister should say.”
“Worse than feeling impotent is giving up, because no matter how complicated things are, we can and must pull out of this, because we have qualified young people, the result of the investment in education made over the last few decades,” said Gomes, one of the most prominent leaders of the so-called left wing of the Socialist Party.