Economic news from Europe

Discussion in 'Computer Support' started by Aardvark, Oct 18, 2008.

  1. Aardvark

    Aardvark Guest

    It seems that the lower house in Germany has approved a €480 billion
    (yes, that's four hundred and eighty BILLION eurodollars) to bail out the
    German banks from the current financial crisis.

    I should think that the plan will now go to the upper house for
    Aardvark, Oct 18, 2008
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  2. Aardvark

    ® Guest

    A tad bit more than €39 billion and Germany will be nearly match with
    the wasted $700 billion (USD), which was supposed to have stabilised
    markets here abouts.

    If it were up to me, I'd nominate this so-called "plan" for more than
    simple "inspection".
    ®, Oct 18, 2008
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  3. Aardvark

    HEMI-Powered Guest

    Aardvark added these comments in the current discussion du jour
    Aardvark, harkening back to our larger discussion of spending on
    the military, social programs, and now bailouts as some
    percentage either per capita of of GDP, half a trillion euros in
    Germany is even larger than what I've heard the UK spending has
    been so far, reported here as mid $400B range when converting
    from Pounds to dollars.

    This is truly astounding to me given the relative sizes of the
    respective economies as measured by GDP. Ditto for Japan's
    infusion of capital. I am not privy to the inside info,
    naturally, but wouldn't understand it if I were. But, my take on
    this is that at least one reason - if not the biggest one - that
    the problem that started as a subprime mortage issue just in the
    US suddenly looms even larger across all the world's economies
    because so much money is interlocked amonst the G-7 and G-20
    central banks, but ALSO because so much of American debt is owed
    to countries outside the US, principly China.
    HEMI-Powered, Oct 18, 2008
  4. Aardvark

    HEMI-Powered Guest

    ® added these comments in the current discussion du jour ...
    I only wish I could be sure that any of this is or is not
    "wasted" or that any of this will or won't fix the problem, but
    once a snowball rolls down hill, it becomes far more difficult to
    stop than it ever is to prevent rolling down in the first place.

    See other of my comments and Aardvarks, but please pay special
    attention to the notion of how international banks and
    governments have an incestuous relationship with each other that
    tends to aggravate any dislocations.
    HEMI-Powered, Oct 18, 2008
  5. Aardvark

    Aardvark Guest

    I saw the figure last night and knew even without trying to do any simple
    arithmetic that the amount would be far in excess in real terms (ie USD)
    than the Bush rescue package. I knew that it would be of moderate
    interest to yourself and that's why I made the OP :).
    It still remains to be seen what the upper house in Germany thinks of the
    plan, so the situation there is by no means cut-and-dried.
    Aardvark, Oct 18, 2008
  6. Aardvark

    HEMI-Powered Guest

    Aardvark added these comments in the current discussion du jour
    This is of interest to me, and should be for everyone. My comment
    above is simply to illustrate that I see the advantage you
    asserted days ago in putting the bailout spending of any given
    country into some perspect wrt others by using GDP, that's all.
    The nature of most governments reacting to a crisis rather than
    planning to prevent one, is that the party in power attemts to
    rush the fix through their legislative branch or whatever the
    legal mechanism is for authorizing fiscal action, but NOT
    providing full transparency via public hearings. The oft repeated
    reason, pretty bogus at best, is that their ain't enough time but
    perhaps there isn't time NOT to hold hearings.

    But, as we've seen the credit crisis and the market sell offs
    getting larger, not smaller, it does beg the question why there
    were NO hearings in about any country either during the earliest
    days of meddling in the home mortgage markets or now during the
    desperation of fixes.

    Screaming in alarm helps no more now than it did when Chicken
    Little said the sky was falling.
    HEMI-Powered, Oct 18, 2008
  7. Aardvark

    Aardvark Guest

    Was there really any need to look into Germany's GDP either as a country
    or per capita to know that the amount is little short of incredible? I
    think not :)

    Despite this, the following are the 2007 figures from the good old CIA:

    GDP (purchasing power parity): $2.807 trillion (2007 est.)

    GDP (official exchange rate): $3.322 trillion (2007 est.)

    GDP - real growth rate: 2.5% (2007 est.)

    GDP - per capita (PPP): $34,100 (2007 est.)

    HTH mate.
    Aardvark, Oct 18, 2008
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