Investec: recession is "best case" scenario for currency markets

Considering first the recession scenario, Papasavvas believes we will have already seen the worst of the financial crisis. In this scenario letting Lehman Brothers file for bankruptcy may have been a policy mistake, argues Papasavvas, as it became a catalyst for the recent panic in markets. He said: "With the worst of the news behind us we would expect policy measures to start taking effect this quarter. The probable outcome is a textbook global recession, which we know how to deal with; we should manage to avoid a repeat of the US depression or Japan's unfortunate loss of the past two d...