As previously discussed, action was taken after the disease began infecting the core.

Germany backs Draghi bond plan against Bundesbank
Bundesbank Says German Economy May Cool Further in Second Half
Spain Home Rents Rise, First Time Since January, Fotocasa Says

And, also as previously discussed, I’m watching for signs deficits may be high enough for
euro zone GDP stability this quarter.

Germany backs Draghi bond plan against Bundesbank

By Ambrose Evans-Pritchard

August 20 (Telegraph) — “A currency can only be stable if its future existence is not in doubt,” said Jrg Asmussen, the powerful German member of the ECB’s executive board. Mr Asmussen told the Frankfurter Rundschau that the surge in Club Med bond yields over recent months “reflects fears about the reversibility of the euro, and thus a currency exchange risk” rather than bad economic policies in struggling states. Mr Asmussen confirmed that purchases may be “unlimited” in scale, a far cry from the half-hearted intervention of the past two years, which failed to stem capital flight. The Daily Telegraph can confirm reports in Der Spiegel that ECB technicians are examining plans to cap Spanish and Italian bond yields, among other options.

Bundesbank Says German Economy May Cool Further in Second Half

By Stefan Riecher

August 20 (Bloomberg) — “The prevailing uncertainty in the euro area could have a more negative impact on economic activity in Germany in the second half of the year,” the Bundesbank said in its monthly report. “However, as long as demand for German products from non euro-area countries remains essentially intact, a reversal of the cyclical trend in Germany is highly unlikely.” Growth in Europe’s largest economy slowed to 0.3 percent in the second quarter from 0.5 percent in the first as demand from euro-area trading partners waned. “In addition to ongoing strong construction activity, the outlook for private consumption remains favorable,” the Bundesbank said.

Spain Home Rents Rise, First Time Since January, Fotocasa Says

August 21 (Bloomberg) — Rental prices for Spanish homes rose 0.8 percent in July from June, recording the first monthly increase since January, real-estate website and IESE Business School said in an e-mailed statement.

Average rental prices stood at 7.56 euros ($9.38) per square meter, up from 7.49 euros per square meter in June, according to the statement.

3 Responses

  1. The language employed everywhere to describe economic entities is almost universally imprecise. Agency keeps being ascribed to concepts (prices, cycles, outlooks) which don’t actually do anything. It is as if the economy were some sort of magic mushroom that sprouts after a rain. Then there’s the preference for goods, as opposed to services, mostly because they’re easier to count. Never mind that goods eventually saturate the market (if quality continues high), while the demand for services is virtually infinite, especially when one considers how many people are practically incompetent.

    1. @Monica Smith, Monica why are so many people incompetent? What is the failure of our education system? Erickson says we are growing population faster than they can be educated, that is very dangerous, it ensures ignorance will dominate our electorate and ignorant leaders will be placed into government.

      Amazon has a heat map showing “a people’s history of the united states” as the number 1 democrat book. Have you read this book? Was it taught in your schools?

  2. Warren, in america, if we deficit spend on some large project, say an underwater stargate atlantis city, or a moonbase, we can bring together workers from california, new york, alaska, florida. They all share similar language, pretty similar cultures, religions, history.

    How does deficit spending in Eurzone fix labor mobility issues?

    Lets say euro want to deficit spend and build the

    How do you take arab speaking muslim from turkey and get him to work with spanish speaking catholic from spain all led by german speaking engineer? Policy that seems like it would work in USA doesn’t seem practical in europe.

    At the larger macro scale, if these human beings are not willing to throw thier differences into the dustbin of history and unite so they can be part of the future, but instead still teach thier children hate and division, all the policy goals in the world at the eurozone level is useless waste.

    In America, even after a bloody civil war, I just watched how the hatfield and mccoys kill each other, bill paxton did say in another movie – Game Over Dude! 😉

Leave a Reply

Your email address will not be published. Required fields are marked *