Europe at the Brink

This 23 minutes WSJ documentary brings together its editors and reporters who examine the origins of Europe's debt crisis and why it spread with such ferocity to engulf much of the continent and threaten the entire world.

In 2012, low growth is already expected. Our PM Lee has said as much recently in his New Year message which stated GDP grew 4.8% in 2011 instead of the government forecast 5%.

It is anyone's guess how the Europe drama will develop further this year. Another global recession is not impossible. Looking at financial history, especially from the Great Depression period, I wonder if we are near experiencing the double dip after the initial 1929 crash i.e. the 1937-1941 recession. Circumstances were different but if for the lack of growth and increase in austerity, the market appears dangerously close to a repeat of the past. A rather long article from Economist details more.

In the past three months, I have been tracking the market volatility and particpating in the market action via trading derivatives e.g. MSCI S'pore futures. Certainly not much to cheer about in 2012, in my view (if one is a long-only investor).