Monday, September 24, 2012
German Business Confidence Falls
Declining for the fifth straight month, once you 'sees the magic trick once'...one wonders if the bond-support plan had any real impact on European economic recovery. Especially considering how much Germany has given economic support to Spain and Italy. Will this help raise European markets on the whole, or could Germany be dragged down with them? (Link)
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It would be hard to believe they (Germany) could not. This is the fundamental issue with tying economies together. At the end of the day, you are only as strong as your weakest link. Despite the plans of action Germany has taken, their fate does not lie in their own hands. More must be done on the fronts from the economies dragging behind in order to salvage the union. I believe things will get better for Europe, it would be hard for it to get worse...
ReplyDeleteI think this is exactly what everyone was concerned about when they counted on Germany to bail out struggling countries within the EuroZone. With constant support from Germany's previously strong economy to help the economies of struggling countries such as Spain and Italy, Germany itself has began to slip up. I feel as though there is no right answer to the problem in the EuroZone and that is a very scary thought. With many countries struggling, the fate of this entire group does not seem to be very promising. I believe we are looking at a potential crash of the EuroZone as a whole.
ReplyDeleteI think it is really hard for Germany's economy to be dragged down with rest of the Europe. But if Germany's business continues to fall then European Stability Mechanism won't be too effective. Rest of the struggling European countries need strong economies such as Germany to get out of the crisis. And I completely agree with Travis that it would be hard for the crisis to get worse..
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