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Germany's economy is beginning to show signs of recovery after probably shrinking in Q4, the...

Germany's economy is beginning to show signs of recovery after probably shrinking in Q4, the Bundesbank says. "The largely stable labor market and a better outlook for output suggest that the economic weakness won't last all that long," the bank says. "Companies' expectations have noticeably improved, particularly the estimation of export opportunities,"
Comments (7)
  • beachsidefreddy
    , contributor
    Comments (207) | Send Message
     
    thats great
    21 Jan 2013, 10:07 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9049) | Send Message
     
    They don't get it. What Germany and the EU needs is massive monetary expansion. Instead they keep singing the all's well mantra.
    21 Jan 2013, 10:38 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1673) | Send Message
     
    I can't tell if you are sarcastic or not with many of your comments lol.
    21 Jan 2013, 11:54 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9049) | Send Message
     
    Neither can I.
    21 Jan 2013, 12:47 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    "They don't get it. What Germany and the EU needs is massive monetary expansion. Instead they keep singing the all's well mantra."

     

    I'm slightly confused by your contribution.

     

    1. The EU is not a monetary union. Monetary expansion of € will have little direct effect on say the UK or Sweden.

     

    2. The Eurozone has experienced brutal monetary expansion via the ECB LTRO vehicle.

     

    3. It has never been proven that CB balance sheet expansion has created jobs in the US, UK, or Europe.

     

    4. The longer term repercussions of monetary expansion are unforeseen and uncontrollable.

     

    5. CBs and especially the Fed have an extremely poor track record in recognising and reacting in a timely fashion to bubbles.

     

    6. Monetary policies are not a fix-it-all for different economies around the globe.

     

    7. Currently Germany is by far the healthiest large western economy and has just declared a budget surplus.

     

    8. Ironically, Germany's success over the last 4 years is very much the result of unsustainable US and UK profligacy directly and indirectly via China and other exporters to the US as well as other net importers.

     

    German consumption and real wages have been flat-lining for over 10 years. GDP growth came solely over export growth, which has only been possible because of unsustainable consumption of its importing trading partners.

     

    So should the US actually try to live within its means, it will directly hit China and Germany hard. And Germany hard indirectly again as Chinese demand for industrial machinery and consumer goods wanes. Reminder: China has the largest trade deficit to other nations with Germany.
    21 Jan 2013, 01:20 PM Reply Like
  • wyostocks
    , contributor
    Comments (8087) | Send Message
     
    Maybe if they keep saying all is well, all will be well in spite of the data.
    21 Jan 2013, 12:47 PM Reply Like
  • WMARKW
    , contributor
    Comments (10397) | Send Message
     
    And I was thinking - wow, how quickly they can turn a recession around, I mean in the matter of a few weeks. (Do you really believe it?) And it's taking the USA forever. (Yea, I know we're in positive growth mode - but only slightly)
    21 Jan 2013, 01:49 PM Reply Like
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