from CNBC:
The global economy is likely to be stuck in the
“twilight zone” of sluggish growth in 2013, Morgan Stanley has warned,
but if policymakers fail to act, it could get a lot worse.
“More
than ever, the economic outlook hinges upon the actions taken or not
taken by governments and central banks,” Morgan Stanley said in a
report.
Under the
bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff”
leading to a contraction in U.S. GDP for the first three quarters of
2013. In Europe, the bank’s pessimistic scenario assumes a failure of
the European Central Bank (ECB) in cutting rates and a delay of its
bond-buying program.
