Tuesday, 17 January 2012

German think tank thinks that the euro crisis is (almost) over

Hooray, the euro crisis is finally over!

At least if we are to believe the German think tank ZEW:

“It seems the worst of the euro crisis is over,” Michael Schroeder, head of ZEW’s financial markets department today told Bloomberg Businessweek.

Schröder is basing his positive statement on a poll indicating that German business confidence  jumped the most on record in January. The rise was according to Schröder driven by "upbeat economic data as well as the European Central Bank's massive injection of cash on the markets last month, which has left banks awash with money".

It´s nice to know that there still are optimists in Europe, but at least I would not put my savings in a bank managed by Herr Schröder.

Only yesterday Bloomberg had this to say:

Germany may be on the brink of recession after its economy shrank “roughly” 0.25 percent in the fourth quarter from the third, the Federal Statistics Office said Jan. 11 in an unofficial estimate. A recession is defined as two consecutive quarters of declining gross domestic product.
Economists estimate the euro zone economy will contract 0.2 percent this year, according to the median estimate in a Bloomberg News survey. A separate survey shows the U.S.’s gross domestic product may expand 2.3 percent in 2012.

1 comment:

Volpone said...

Wishful thinking? Unlike the Germans to be so optimistic!