Skip to comments.Angst returns on German recession fears and US fiscal cliff
Posted on 11/07/2012 1:25:01 PM PST by bruinbirdman
Stock markets skidded across the world and investors retreated to safe-haven assets on fears that Europes festering crisis has spread to Germany and a bitterly-divided Washington may struggle to avert a fiscal crisis.
Mario Draghi, the European Central Banks president, warned that Germany is no longer insulated from the slump in southern Europe. "The latest data suggest that these developments are now starting to affect the German economy," he said, triggering an immediate sell-off on Europes bourses and pushing the euro down to almost $1.27 against the dollar.
Germanys industrial output dropped 1.8pc in September and orders fell 3.3pc, far worse than expected. Spanish industrial output fell 7pc. Annalisa Piazza from Newedge said it was a shocking upset and implies that Germany may be in recession already.
Flight to safety pushed down yields on two-year German debt to -0.06pc, nearing the all-time low seen during the last eurozone debt spasm in July. Yields on 10-year US Treasuries fell 11 basis points to 1.63pc.
The jitters came as American voters delivere split government yet again, with the Republicans still in charge of the House of Representatives and the Democrats still shy of a 60-seat super-majority in the Senate.
Alan Greenspan, ex-chairman of the US Federal Reserve, said it is unclear whether President Barack Obama can reach a deal with Congress to head off the "fiscal cliff" in the few working days before recess in mid December. Unless the two sides agree there will be automatic tax rises and spending cuts worth $600bn or 4pc GDP at the end of the year.
"Im concerned that the election per se has really not changed the balance. The solution to this is going to be far more difficult than I think we believe," he told Bloomberg Television. The International Monetary
(Excerpt) Read more at telegraph.co.uk ...
On Election Day, the DJIA was up about 130 points in anticipation of the opposite result: A Romney win.
The possibility of massive chicanery in the Romney vote recording, compilation and/or tabulation in certain key counties in swing states has not yet been ruled out.
>> “The possibility of massive chicanery in the Romney vote recording, compilation and/or tabulation in certain key counties in swing states has not yet been ruled out.” <<
No shiite? - L I B!
Hang tough Republicans, noting worse can happen to you now. The DumBO Depression will haunt the Jackass for the rest of his term.
About every twelve hours....the Telegraph puts out a anti-German or a anti-Euro piece. After you read forty or fifty of these....you just start to realize that someone is drinking while they write the articles and they are meant to slam either the Euro or Germany...nothing more. No reality in facts or attempt to lay down simple truths.
Someone on FreeRepublic will grab the article and say it demonstrates what is going on in Europe. Then after a week or so....you realize it didn’t have any basis.