Governments from countries in Europe and in the United States will be unable to reduce their respective debts in the next three years, according to a poll result that was conducted on Monday. A large number of investors participated in the poll.
The result showed a vast majority (90 percent) of investors not seeing the European governments decreasing its debt values by 2016. The investors do not see any improvements in the region's ability to cut off the deficits.
The same poll showed that two thirds doubted the United States President Barack Obama's government's capability to pay off a significant portion of its debts in the next three years, according to Principal Global investors and CREATE-Research, a United Kingdom-based think tank.
CREATE chief executive Prof. Amin Rajan said, "They (governments) have already succeeded in their early intent: to stimulate demand for risky assets. Whether they will create a lasting 'wealth effect' that ramps up growth and jobs remains an open question."
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