France enters recession as Germany splutters along

Generali

Thrugelmir wrote: »

Reunification came at a huge cost. Which the German people accepted with minimal increases in pay for many years. So hardly surprising that their attitude is that countries should tackle their own issues. Not expect to receive hand outs.

Then it seems that the Germans face a tough choice:

1. Let their customers go bust and so sell less
2. Pay their customers to buy from them

Neither sounds like a great business model.

Thrugelmir

Generali wrote: »

Then it seems that the Germans face a tough choice:

1. Let their customers go bust and so sell less
2. Pay their customers to buy from them

Neither sounds like a great business model.

If the German's find the going tough. Then what hope for the rest of Europe? Trade is interlinked. If Germany slows. Then UK recovery will take even longer.

HAMISH_MCTAVISH

Generali wrote: »

Then it seems that the Germans face a tough choice:

1. Let their customers go bust and so sell less
2. Pay their customers to buy from them

Neither sounds like a great business model.

They've been doing (2) for the last decade.

Exporting inflation in the process.

German "prosperity" was an economic mirage, as the only way they could continue to function as an economy which produced more than it could consume was to export the surplus to poorer neighbours, who could only afford to buy it with the loans Germany gave them, or that Germany supported the EU giving them.

The German people are about to learn that austerity, high unemployment, and misery in their neighbouring economies will only lead to austerity, high unemployment and misery at home.

I think the word Schadenfreude may have been invented by a Greek.:)

ILW

The UK will keep on buying Audis and BMWs. We cannot get enough of them.

grizzly1911

ILW wrote: »

The UK will keep on buying Audis and BMWs. We cannot get enough of them.

Makes Hamish's signature seem appropriate.

ILW

grizzly1911 wrote: »

Makes Hamish's signature seem appropriate.

I saw the new BMW ad yesterday. Don't even know what model it's for but I want one.

Here it is

http://www.youtube.com/watch?v=OJeARbSc2vc

shortchanged_2

Well as long as BMW ditch that monstrosity that is the X6!

What is that all about? It's like a family car on steroids. It looks absolutely ridiculous.

ruggedtoast

ILW wrote: »

The UK will keep on buying Audis and BMWs. We cannot get enough of them.

China is Audi's biggest market, with India a close second.

If you want to see (slightly dented) brand new luxury German motorcars surrounded by filth and squalor then Mumbai is the place to go.

System

michaels wrote: »

Hmm - France, probably seen as a role model/poster child for what Ed and Ed would say a labour govt would look like is in deep do-doo. I wonder if DLW and Moby will be along to comment?

You can follow him on twitter if you like for all the latest updates, here he is bigging up his MSE viewcount.

https://twitter.com/LabourUnited/statuses/315944507965329408

MacMickster

Generali wrote: »

I suggest that the primary lesson that you can't live beyond your means indefinitely has been well learned.

The secondary lesson which is that you can't earn your living by selling to those living beyond their means indefinitely is just starting to sink in.

German companies have a problem. They design and then manufacture goods that people want, but are increasingly unable to afford.

Maybe the answer for these companies would be for BMW, Audi, Mercedes and Volkswagen to close down their German plants and open new ones in Bangladesh benefiting from much lower labour costs. Surely this would be the logical step for these companies in a global economy. It would be a bit of a blow for the German economy though.