No. of Recommendations: 5
There are two articles this morning. One showing the numbers, Europe's last best hope, Germany is falling. My guess is that it will capitulate. I do not see how this will end well for Europe. Right now, and the crystal ball is very cloudy right now, it appears that there are two outcomes for Europe, bad, and very bad.

As Germany loses its industry and wealth to the United States it will cease to be able to fund any help for Southern Europe. Hold on that is not the bad part.

There can be two reactions to this. One the EU comes together and determines a way forward that either dissolves or adjusts the union to help through the difficult times ahead, or the EU breaks apart with acrimony and finger pointing if not out right war.

For me I have been expecting a bubble in the DOW as the industrial become to be seen as the last best hope for capital safety. However, the articles make me re-think my position. The DOW may be the best investment because the companies in are going to be making a lot of money. Imagine that, investing in a company because it will make money.

Fascinating.

Cheers
Qazulight

http://www.bbc.co.uk/news/business-22000996

The jobless figures from Eurostat also showed that Spain's unemployment rate hit 26.3% in February, while the rate in Portugal remained stable at 17.5%.

The lowest rates were recorded in Austria (4.8%) and Germany (5.4%), both unchanged from January. The overall unemployment rate for the eurozone in January was revised up from 11.9% to 12%.


<snip>

Germany and the Republic of Ireland both fell back below 50, while the rate of decline accelerated in all other eurozone countries apart from France

http://www.charlotteobserver.com/2013/04/01/3954494/european...

The shift toward investment in the United States is another testament to the far-reaching effects of newly unlocked American energy reserves, made possible by new applications of technology that have lagged in Europe. Energy-intensive industries such as steel and chemicals are particularly affected, because they use natural gas as a raw material and a power source. But many analysts say those industries are simply the vanguard of a broader shift, because the boom has given an advantage to all U.S.-based manufacturing through lower electricity prices.

As billions of dollars pour into the United States, the outflow from Europe is costing jobs and weighing on decisions there about ambitious and expensive green-friendly policies.

“It’s become clear, with the drop in gas and electricity prices in the United States, that we are, at the moment, at a significant disadvantage with our competitors,” said Gordon Moffat, the general director of Eurofer, the main lobby group for European steel manufacturers. “The reality will hit home in Europe as regards climate policy. There will be modifications in order to take better account of our industrial realities.”


Read more here: http://www.charlotteobserver.com/2013/04/01/3954494/european...
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