Greetham: 'Fiscal masochism' risks a double dip

Fidelity International's Trevor Greetham has warned the "fiscal masochism" of US and European policies is leading to a new risk of recession and stagflation.

Greetham, asset allocation director at the group and manager of the £582m Multi Asset Strategic fund, said fiscal policies represent the greatest risk at a time when global economic indicators are showing a general slowdown in growth. "All leading global indicators are pointing downwards and US revised GDP figures recently showed there is as much unemployment and as much spare capacity now as there was when QE2 started," he warned. "In the case of the UK, quantitative easing has not managed to offset fiscal tightening and the country is pretty much back into recession," he said. He...