links for 2011-09-19

David Marcus, manager of the Evermore Global Value Fund, says alarming news stories about Europe's debt debacle — including a possible default in Greece — is creating the biggest bargains in two decades. As a global value-fund manager, Marcus has put his focus squarely on European stocks, as many stock indices — from Germany to France to Italy — are mired in bear markets after plunging on sovereign bankruptcy fears plaguing the continent.

By repeating and extending the fundamental elements of the OBR methodology, it is clear that even if there is no slippage in borrowing from previous forecasts, the level of spare capacity in the economy is lower than expected, so the OBR will not be able to forecast as much catch-up growth as it did in March. More of the deficit appears permanent and will not be eliminated by a bounce back in the economy.