Europe Faces Threat of Full-Fledged Depression

[marmar]

FRANKFURT (MarketWatch) — “Depression” isn’t the word usually used to describe the euro-zone economy, but it may become increasingly appropriate as hopes for a recovery give way to fears of an extended and destructive downturn that policy makers seem unable to halt.

“Unemployment is at a record high, credit is going down, banks are failing…what do you call an economy like that?” said Carl Weinberg, chief economist at Valhalla, N.Y.-based High Frequency Economics and an unabashed user of the ”D-word” to describe Europe’s economic situation.

There is no uniformly accepted definition of a depression, but economists generally agree that depressions last two or more years and are accompanied by a big jump in unemployment, falling credit, and a massive slump in economic output.

That’s certainly been the case for parts if not all of Europe. The Greek unemployment rate hit a once unfathomable 27.2% in January. In Spain, 26% of workers are jobless. Across the euro area as a whole, more than 19 million people are out of work while the unemployment rate stands at a record 12%. ....................(more)

The complete piece is at: http://www.marketwatch.com/story/europe-faces-threat-of-full-fledged-depression-2013-04-17

[golfguru]

1. The European model has failed

Sadly we are pining for it.

[pscot]

3. Austerity has certainly failed

And the Euro always seemed like a dubious proposition. Then there's global Capitalism; a mixed blessing at best. I'm not sure you can single out the European model.

[golfguru]

5. Euro worked great.....for a while

The Euro made it much easier to trade within the EU. Tariffs and trade restrictions were lifted within the EU. European economy was doing better
after Euro cam into being.

The reason austerity is being forced is because exact opposite of austerity (spending beyond your means) was practiced by the PIIGS countries.

[mother earth]

2. And we have sequestration...aka austerity...tick tock nt.

[xchrom]

4. Du rec. Nt

[chervilant]

6. hmm...let's see now...

"...but economists generally agree that depressions last two or more years and are accompanied by a big jump in unemployment, falling credit, and a massive slump in economic output."

Sound familiar?

The corporate megalomaniacs behind the curtain are like the little Dutch boy sticking his finger in a hole in the dike while water pours through the massive crack behind him--they're frantically applying band-aids to the multiple fissures in the global economy, hoping it doesn't blow apart in spite of their best efforts.

[jtuck004]

7. Silly Europeans. When your banks fail just print money, send it to them, and take it out

of the hides of working taxpayers. The taxpayers die off, sure, but the banks, the wealthy and greedy, live forever.

Works for us

[golfguru]

9. Don't you have it backwards?

The banks profit by keeping politicians in their pockets. Who elects the politicians? The dumbass voters who think that the politicians who legislates most benefits is the one to vote for. If the voters were smart, the big banks would have no chance.

[jtuck004]

10. Voting is more prevalent among those with more money. Despite the RW meme that

they vote for more benefits, the poor are far less likely to vote.

But that first sentence is surely true.

[golfguru]

11. If you don't believe me just ask

any senior citizen if they will vote for anyone who will cut their social security and medicare.

[jtuck004]

12. I believe you. What I find ironic are the numbers who appear quite willing to vote for

people who WILL cut their SS and Medicare. That's something I don't understand.

The same ones that will tell you they never would, will.

Then again, how many workers continue to work for others for very little when they could, by just working with each other a bit, own the assets they provide for a few?


As you wrote, dumbass voters. All around us.

[mbperrin]

8. Let's see: austerity measures take billions out of the real economy

and hand it to the shadows - banks, insurance companies, hedge funds, and other parasites.

Real people have no jobs and can buy nothing, as a result, so those who still have jobs lose them over no sales.

TOO BAD NO ONE EVER thought of anything to do about this.

Hmmm? Keynes? Who??? Nevah hoid of him!

[bemildred]

13. Gee, who could have predicted this? nt