German economic conditions are holding up despite the Greek crisis

[yellowpage09]

April's rise in the Ifo German Business Climate Indicator (BCI), from 107.9 to 108.6, suggests that economic conditions are holding up despite the Greek crisis and comes as a relief after falls in the ZEW and PMI surveys. (Data released on Friday.)

But while the index measuring current conditions rose, the expectations component fell for the first time in six months.

"The Ifo has tended to lag a little behind the PMI equivalent index in past cycles, so if the downturn in the latter is sustained, we would expect the Ifo to follow suit before long." said Capital Economics

(Source: http://fxwire.pro/German-economic-conditions-are-holding-up-despite-the-Greek-crisis-29315)

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[Amph]

i've always believed that greece crisis didn't matter much, they are tiny in comparison with other countries in the euro zone, even if they were going out of the euro, would not change anything

[qiwoman2]

Well it will be an issue if ITAY, SPAIN, IRELAND, PORTUGAL also look to default on their EU Loans so fine if the EUORZONE doesn't want to help the Greek Economy grow and just want to create a debt driven impoverished third world nation out of Greece, others will rebel also and say f*ck you you to the EU..excuse my Frenchies. 

[darkangel11]

debt driven impoverished third world nation out of Greece

Greece is obviously not the best country right now, but despite their issues they are still ranking Very High on the  Human Development Index - unlike China, Brazil, India, Russia or Turkey.

That's how you get into debt. You offer high salaries and good services to your citizens and don't demand anything back.
In India there's almost no hygiene and people are eating street food made in unacceptable conditions, while in Russia a lot of people still have to collect wood every day to keep their houses warm.

[aso118]

debt driven impoverished third world nation out of Greece

Greece is obviously not the best country right now, but despite their issues they are still ranking Very High on the  Human Development Index - unlike China, Brazil, India, Russia or Turkey.

That's how you get into debt. You offer high salaries and good services to your citizens and don't demand anything back.
In India there's almost no hygiene and people are eating street food made in unacceptable conditions, while in Russia a lot of people still have to collect wood every day to keep their houses warm.

Do you know anything about Russia or India?

[qiwoman2]

Unfortunately this living on debt lifestyle has been the brainchild of the banks, started with ninja mortgages and credit cards. These last two generations were brainwashed to raise their standard of living by borrowing money and now we have a very young generation who want everything fast and ready. This is the worse nightmare for any economy and it is built on air. Instead of focusing on GDP and industrial/agricultural output and production govts and banks along with the wall st sharks have colluded to sell this pipe dream to their citizens. Unfortunately most citizens bought in and are now suffering. If people in Greece will also wake up and look to build a sustainable economy they can get out of this mess. Germany and Japan went high after the 2nd world war, Greece can do it too, but the Govt and People must look to sustainable economic solutions and create and generate GDP themselves by taking at least half the population out of urban areas and back into the countryside to work the land/ build cottage industries..etc ..not to banks and the EU.

[pitham1]

Unfortunately this living on debt lifestyle has been the brainchild of the banks, started with ninja mortgages and credit cards. These last two generations were brainwashed to raise their standard of living by borrowing money and now we have a very young generation who want everything fast and ready. This is the worse nightmare for any economy and it is built on air.

When companies use their earnings just to repay debt, there is contraction of the size of the balance sheet. When it happens throughout the economy, you could have a 'balance sheet recession'. The effects of this can be painful. It is better if the huge debt which has been incurred is paid off over a period of time.

[LiteCoinGuy]

Well it will be an issue if ITAY, SPAIN, IRELAND, PORTUGAL also look to default on their EU Loans so fine if the EUORZONE doesn't want to help the Greek Economy grow and just want to create a debt driven impoverished third world nation out of Greece, others will rebel also and say f*ck you you to the EU..excuse my Frenchies. 

so we just have to run the press a little longer 

[thejaytiesto]

Is it any wonder that Germany (population: 80 million; GDP per capita ~46k USD) is doing just fine when Greece (population: 11 million; GDP p. c. ~22k USD) is having some issues?

Germany is making things look better than they are with the minijob scams. They are giving out shit tier jobs to people in order to say: "see, look how low our unemployment rates are".
It's unfortunate the rest of the countries are going to import that model. Shitty paid part time jobs is the future that we have ahead, while politicians celebrate the end of the crisis because % of unemployment rate goes down.

[countryfree]

I happen to be in Germany, and there's money around, no doubt about that, but anyone can see why. The Germans are working harder, and they're smarter than the Greeks. It's been like this for centuries. Doesn't anyone remember that Germany lost WW2? Germany was destroyed and ruined in 1945, much more than Greece, but barely 20 years later the Germans were richer than the Greeks.

[maku]

I happen to be in Germany, and there's money around, no doubt about that, but anyone can see why. The Germans are working harder, and they're smarter than the Greeks. It's been like this for centuries. Doesn't anyone remember that Germany lost WW2? Germany was destroyed and ruined in 1945, much more than Greece, but barely 20 years later the Germans were richer than the Greeks.

Hmm you are a bit unfair to the Greeks. There are several reasons to why Germany is such rich country. Yes they work hard but also Germany weren't so lossy after WW2.
Firstly Marshall Plan
http://en.wikipedia.org/wiki/Marshall_Plan#Expenditures
Germany received almost 5x more $ then Greece.
Secondly Germans in WW2 destroyed or weakened almost every other country in Europe so they were not so far behind France after the war.
Thirdly companies like BMW or Volkswagen and others were producing military equipment. After the war they had "know-how" to build machines and other useful stuff like agricultural machinery, manufacturing equipment and so on.
Fourthly Germany is keeping their economic policies liberal

[countryfree]

I happen to be in Germany, and there's money around, no doubt about that, but anyone can see why. The Germans are working harder, and they're smarter than the Greeks. It's been like this for centuries. Doesn't anyone remember that Germany lost WW2? Germany was destroyed and ruined in 1945, much more than Greece, but barely 20 years later the Germans were richer than the Greeks.

Hmm you are a bit unfair to the Greeks. There are several reasons to why Germany is such rich country. Yes they work hard but also Germany weren't so lossy after WW2.
Firstly Marshall Plan
http://en.wikipedia.org/wiki/Marshall_Plan#Expenditures
Germany received almost 5x more $ then Greece.

So Greece received more per person than Germany.

Secondly Germans in WW2 destroyed or weakened almost every other country in Europe so they were not so far behind France after the war.
Thirdly companies like BMW or Volkswagen and others were producing military equipment. After the war they had "know-how" to build machines and other useful stuff like agricultural machinery, manufacturing equipment and so on.
Fourthly Germany is keeping their economic policies liberal

That's what I'm saying, the Germans are just smarter, with more technical knowledge, and better politics to organize things. I maintain life was harder in Berlin in 1946 than anywhere in Greece.

[maku]

That's what I'm saying, the Germans are just smarter, with more technical knowledge, and better politics to organize things. I maintain life was harder in Berlin in 1946 than anywhere in Greece.

I wouldn't put it that way, there are many factors way some nations are doing better then others and it has nothing to do with who is smarter (Russia have many smart people but because of geopolitics the country itself is not so powerful as it could be)


As for the German economic condition today its looking pretty good, in the link there are few nice graphics showing how European countries are doing
http://www.economist.com/blogs/graphicdetail/2015/04/european-economy-guide

[Q7]

That goes back to the question of how generous people are or how long they are willing to tolerate. Yeah, we could say Greece might not matter at all which is true but the whole economic will get shaken badly if there are strings of event dragging along one after another. Let's see how long it can maintain that way.

[countryfree]

That's what I'm saying, the Germans are just smarter, with more technical knowledge, and better politics to organize things. I maintain life was harder in Berlin in 1946 than anywhere in Greece.

I wouldn't put it that way, there are many factors way some nations are doing better then others and it has nothing to do with who is smarter (Russia have many smart people but because of geopolitics the country itself is not so powerful as it could be)


As for the German economic condition today its looking pretty good, in the link there are few nice graphics showing how European countries are doing
http://www.economist.com/blogs/graphicdetail/2015/04/european-economy-guide

It's quite true. Confucius said something like that. If a country goes wrong, it is because of the leaders. I wonder if Greece (or Russia) ever had a smart government.

[dakota neat]

this sums it up pretty well

[tyz]

In my opinion, there are three factors why the German economy is still doing very well despite all the dangers at the horizon: cheap oil, an extremely week Euro (researchers say that Germany can live with a Dollar/Euro rate of 1.6/1) and the deindustrialization of many other countries.

[maku]

That's what I'm saying, the Germans are just smarter, with more technical knowledge, and better politics to organize things. I maintain life was harder in Berlin in 1946 than anywhere in Greece.

I wouldn't put it that way, there are many factors way some nations are doing better then others and it has nothing to do with who is smarter (Russia have many smart people but because of geopolitics the country itself is not so powerful as it could be)


As for the German economic condition today its looking pretty good, in the link there are few nice graphics showing how European countries are doing
http://www.economist.com/blogs/graphicdetail/2015/04/european-economy-guide

It's quite true. Confucius said something like that. If a country goes wrong, it is because of the leaders. I wonder if Greece (or Russia) ever had a smart government.

Again - there are so many factors why some countries are doing better then others that you cannot put it only on people being smart or not (of course intellect, hard working are very important but not the only reasons).

In my opinion, there are three factors why the German economy is still doing very well despite all the dangers at the horizon: cheap oil, an extremely week Euro (researchers say that Germany can live with a Dollar/Euro rate of 1.6/1) and the deindustrialization of many other countries.

Can you provide some links to those researches? If you are bringing something like that up it's good to post some link with it and I'm too lazy to search for it myself

[AtheistAKASaneBrain]

In my opinion, there are three factors why the German economy is still doing very well despite all the dangers at the horizon: cheap oil, an extremely week Euro (researchers say that Germany can live with a Dollar/Euro rate of 1.6/1) and the deindustrialization of many other countries.

Germany is the equivalent of being the central bank itself of europe... everything is controlled from there, that plus the makeup unemployment rates thanks to minijobs + good welfare keeping people away from perceiving the crisis and rioting.

[bojan92]

Greece is in the European union because they have the sea. That is the fact. Every country that is a part of the European union is there because the European union has some sort of interest. Gemany is a large country and produces a lot of things which are exported. That is why it has no problem with the crisis that are hitting other economies.