Frankness From The ECB

In an interview with the BBC, the head of the European Central Bank Jean-Claude Trichet warns that there is 'an ongoing, very significant market correction.' In the BCC, Mr Trichet has compared 'recent rises in energy and food prices to the 1970s oil shock.'

Europe is in a tricky spot right now having to deal with a slow-down in the US, credit problems that have infected European banks, increases in commodity prices and a strong Euro all which are creating headwinds for the EU.

Source:
'ECB head: Credit crunch 'ongoing'', interview by Robert Peston, BCC
'Jean Claude Trichet warns of 'very significant market correction' , by Miles Costello, FT Online