PDA

View Full Version : Europe in deepest recession since War



Rockntractor
05-16-2009, 05:39 PM
Europe in deepest recession since War as Germany suffers
German economic policy is "bankrupt", economists have said.


By Edmund Conway and Angela Monaghan
Last Updated: 7:34PM BST 15 May 2009
Not much to shout about: the sunny mood and days of the 2006 World Cup seem a long time ago as Germany has suffered increasing economic woes, including a record contraction in the first quarter of this year
The declaration was made as it emerged that Europe's biggest economy has now suffered a worse "lost decade" than Japan and is deeper in recession than any other major economy.

On a day of dismal news for the European economy, official figures also showed that Italy, Austria, Spain and the Netherlands are facing their biggest combined slump in post-war history, sparking warnings about the potential for social unrest throughout Europe.

http://www.telegraph.co.uk/finance/economics/5331129/Europe-in-deepest-recession-since-War-as-Germany-suffers.html

Artois
05-17-2009, 11:26 PM
Perhaps they'll follow the Nanny state's lead, raise taxes! :eek:

Water Closet
05-18-2009, 07:50 AM
The contrast in the EU between Germany (suffering the most) and the UK (suffering the least) is to be expected as it reflects the differing approaches of the two countries to this crisis. Merkel has refused to spend Germany's way out, running in opposition to both Obama and Brown who have chosen to spend borrowed monies. The impacts are to be expected. What is in question is the long-term health of countries following these opposing approaches in terms of debt and ability to rapidly grow to address that debt.

Sonnabend
05-18-2009, 08:51 AM
Oh, the UK is suffering...just not economically. Yet.

The UK has its own problems and is well on the way to becoming a dhimmi state.Plenty of pain to go around soon enough, I will imagine.:rolleyes:

lacarnut
05-18-2009, 11:29 PM
The contrast in the EU between Germany (suffering the most) and the UK (suffering the least) is to be expected as it reflects the differing approaches of the two countries to this crisis. Merkel has refused to spend Germany's way out, running in opposition to both Obama and Brown who have chosen to spend borrowed monies. The impacts are to be expected. What is in question is the long-term health of countries following these opposing approaches in terms of debt and ability to rapidly grow to address that debt.

My bet is that Germany by absorbing the pain now will come out the winner unlike other EU countries and the US. The US is in jeopardy of losing their AAA rating. Germany is considering goint back to their own currencey which is the mark cause the Euro is not doing so hot.

StoicLion
05-19-2009, 03:48 PM
LACarnut:

I agree that Germany will probably come out of the recession stronger. When the economy rebounds, Germany will seem like the wunderkind, with double-digit quarterly increases in growth. However, Merkel will not survive politically to see it. The short-term pain will cause her to lose face with the public.

People have notoriously bad memories. If not, they would have remembered the interference of governments into free market mechanisms turned the 1929 recession into the Great Depression. The call to do something - ANYTHING! - led to the proposal of problems that would have worked themselves out.

It's unfortunate that public understanding of history and basic economics (not theoretical economics of academics) has put much of the world in this current fix.

lacarnut
05-19-2009, 04:10 PM
LACarnut:

I agree that Germany will probably come out of the recession stronger. When the economy rebounds, Germany will seem like the wunderkind, with double-digit quarterly increases in growth. However, Merkel will not survive politically to see it. The short-term pain will cause her to lose face with the public.

People have notoriously bad memories. If not, they would have remembered the interference of governments into free market mechanisms turned the 1929 recession into the Great Depression. The call to do something - ANYTHING! - led to the proposal of problems that would have worked themselves out.

It's unfortunate that public understanding of history and basic economics (not theoretical economics of academics) has put much of the world in this current fix.

Shame we did not follow Germany's lead. Billions of bailout dollars wound up in EU banks. Taxpayers get the shaft, and these ungratefulls don't even give us a thank you.

StoicLion
05-22-2009, 12:17 PM
As Rousseau wrote, "Gratitude is a duty which ought to be paid, but which none have a right to expect."