Swedish Understatement

by Andrew Stuttaford
The minutes of the July 4 monetary policy meeting of the Riksbank (Sweden’s central bank) were released today. This caught my eye (emphasis added):

The baseline assumption in the draft report prepared for the meeting is that the Eurozone members [Sweden is not a member of the Eurozone] will manage to handle the debt problems in a way that will not seriously disrupt financial stability. While Deputy Governor Karolina Ekholm said this was “reasonable”, she observed that “management of these problems to date does not appear to have been particularly effective.

You think?

Ekholm added:

“It is also reasonable to assume that there is some likelihood that the situation will not be dealt with successfully and that something like a real crisis will develop…”

And that’s just what appears to be happening.