German Economy in for Hard Times

So that's why BMW dealers keep calling...The latest sentiment figures for Germany are out from the ZEW Economic Insitute and they are nasty. Sentiment is now well below average, and is at a five-year low, which would normally indicate a recession within the next six months.

So much for the detachment theory folks, who have been arguing that even if the U.S. goes into recession the rest of the world will continue ticking along merrily.