The document discusses the potential economic and market responses to austerity programs in the US and Europe following the Budget Control Act of 2011. It analyzes various fiscal scenarios and their impact on debt, highlighting the challenges of fiscal consolidation and the implications for GDP growth and corporate profits. The report also examines the European debt crisis, particularly the situations in Spain and Italy, and the potential policy responses. It concludes with an analysis of equity market valuations and P/E ratios in the context of ongoing economic challenges.
documents/EFTA01070403.pdf
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