There was some speculation around June that Germany's economy was going to collapse even though everything appeared to look all great on the surface. Should Germany's economy collapse as it was predicted then the EU will have some serious problems. Investors would lose confidence in the EU, the Euro's value would plunge and what would follow is a global financial crisis.
Germany is probably one of the strongest economies in the EU and any downturn is going to affect the other countries. While there was signs that Germany was starting to slow down, I font think the warning signs were taken to seriously, but now people are starting to get concerned. There's no reason to panic just yet, but it's certainly a situation to keep an eye on.
Meltdown in Germany? Highly unlikely. They are running Europe and have a big influence in the word, just look how the handled the VW scandal, they are a top country, economically speaking.
Germany is the economic centre of Europe and if it falls then so does the rest of Europe, as well as the Euro currency dropping in value. I cannot see the German economy collapsing just yet but the slowdown is something that might be worth to keep an eye on at least.
I hear you - and accept that you all disagree. I'm a Bear and not happy with events the last 8 days... But this was a well-meant post as the depth of the political follies being committed is staggering. Add the lack of honesty by the government. One day, they will have to explain why they need to recapitalize both, ECB and next, Bundesbank as 27% owner, due to Greece having issued I.O.U.s worth > 100 bn Euros through the TARGET 2 EUROSYSTEM. Total debt: around 1 trillion Euros, owed to the Bundesbank. Not a problem, it's a claim, an asset in the balance sheet
I wouldn't say that I disagree entirely, I just think that there's a long way to go before Germany will be on the verge of economic collapse. They're a leading member of the EU with a strong important and export economy. Greece survived their troubles, all be it only just, and with a lot of help so I've no reason to think that if the worst came to the worst, then Germany would be in a much better position to start off with.
That rumour was probably spread by traders who wanted to profit it. I am glad nobody took it seriously.
Your right and rumours are tried to be spread regarding all the financial markets all the time by people who are trying to cash in. Some work but I'd say that most of them don't and people are a lot wiser now to the games that people try and play, even more so now with the internet being at hand to double check everything we hear.
There are rumors and rumors and that sort of rumor surely would not hold because Germany has one of the strongest economies in the world and not even the VW scandal makes a difference.
