Wednesday, September 26, 2007

German Hoarding Tendencies

Germany Could Be At Peak Of Economic Cycle
The main concerns appear to have revolved around three issues: the relentless rise of the euro against the dollar, a rise in oil prices, and financial market turmoil caused by mistrust between banks over investment exposure to America's subprime mortgage troubles. A hoarding of cash by banks will make it increasingly difficult for companies and consumers to borrow money.

If the German banks hoard cash, then how are the German people going to come up with the cash needed to hoard canned goods? This is a very complicated situation indeed. They've already had to hoard goods once not all that long ago. I believe it ended with the great bed pan hoarding of Aunt Rosa.

The trend lower suggested "a permanent change of course" for the German economy, Commerzbank analyst Ralph Solveen said. "We expect the German economy to lose further steam in the coming quarters," he added.

Is that permanent in a Titanic sinking sort of way? I only ask because the Titanic used steam engines.

Bonus points awarded to Kevin for reminding me of Germany.

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