http://www.nytimes.com/2012/11/16/business/global/daily-euro...European Economy Shrank for a Second QuarterBy JACK EWINGNew York Times, November 15, 2012FRANKFURT — The European economy shrank for a second quarter in a row, according to official data released Thursday, fulfilling a common definition of recession and signaling that the region still faces a long road to recovery.Gross domestic product in the euro zone fell 0.1 percent in the three months through September compared to the previous quarter, according to Eurostat, the European Union statistics agency. The euro zone economy improved slightly from the second quarter, when it contracted by 0.2 percent. But it was the fourth quarter in a row of zero growth or worse. ...Germany grew 0.2 percent in the third quarter, slowing from a rate of 0.3 percent in the second quarter. But data on exports, domestic demand and business sentiment indicate that growth in Germany, the euro zone’s largest economy, will slow in future quarters because of falling demand from its neighbors, economists said. ......with unemployment in the euro area at 11.6 percent, and nearly 26 million people out of work, few would dispute that the region is in a deep downturn.“Leading indicators suggest that the euro zone recession will broaden and deepen in the current fourth quarter,” said Martin van Vliet, an economist at ING Bank. [end quote]Europe is already in recession. The 4Q leading indicators are down. Germany, which is expected to underwrite the rescue of insolvent countries, is expected to slow further from its already slow growth rate. A slowing Europe will be a drag on U.S. exports. This trend is negative for the markets.Wendy
Europe is already in recession. The 4Q leading indicators are down. Germany, which is expected to underwrite the rescue of insolvent countries, is expected to slow further from its already slow growth rate. Europe may be in recession, but there is one thing I can say positive about German exports. They really do make great cars.DW and I have each been driving BMWs or MBs since the 80's (I've just passed 16 years/160,000 miles with my current MB C-Class).On Saturday, I test drove the (recently released in the US) BMW X-1 (crossover/small SUV). It's been out in Europe for many years and in Canada for a couple of years.It is a great car. If I can improve my cashflow situation in the current environment (sort of like wishing upon a star), I'm definitely going for one of these little machines. A real joy to drive.In the meantime, I'll keep plodding along in the same the German car I've had since 1996, when the dot.com bubble was just beginning.Yes, it's been that long since we had a generally "upbeat" outlook among young people in this country.Generation Opportunity noted it’s important to realize that “the declining labor participation rate has created an additional 1.715 million young adults that are not counted as ‘unemployed’ by the U.S. Department of Labor because they are not in the labor force, meaning that those young people have given up looking for work due to the lack of jobs.” If the labor force participation rate were factored into the calculation, the actual 18-29-unemployment rate would rise to 16.7 percent. “[July’s] unemployment number [was] another indicator of the far greater, more fundamentally devastating, and still under-reported story impacting young Americans,” Conway announced... “For nearly three and half years, young Americans have experienced historically high unemployment levels – levels that are among the highest since the end of World War II – that tell the story of millions of delayed dreams and careers of the next greatest generation.http://www.examiner.com/article/young-americans-calling-whit...Anyway, the Germans do make excellent (and safety-minded) cars.It's a shame that the rest of Europe is such a mess.;-)
Europe may be in recession, but there is one thing I can say positive about German exports. They really do make great cars.Due to Honda's continued refusal to produce a 2 door hatchback Civic for the US market, I may wind up in a Golf some years in the future. Next generation doesn't make it to the US until 2014. http://www.volkswagen.de/de/models/golf_7.htmlclick the "konfigurator" thingy to see the 2 door.Steve
I looked at a Golf TDI last year, but felt it wasn't what I needed to get up the hill to our house in icy conditions. I bought an Impreza w/ a CVT.MDH drives a VW Jetta Sportwagen TDI. He loves it. He can drive what seems like forever and doesn't get tired. Looks like they borrowed a lot of tech from Audi and sell it at a reduced price w/o the Audi badge. By far it has the most carrying capacity of a small wagon, or an SUV, at 66 cu. ft. w/ the rear seats down.PM
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