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Confidence In German Economy Flat Out Collapses In Dastardly ZEW Print
Tuesday brought more bad news for the Germany economy as the market anxiously ponders the prospect of a recession and the very real possibility that Berlin will not loosen the fiscal purse strings even in a downturn.
Investor confidence (as measured by the ZEW survey) collapsed 19.6 points in August to -44.1, the lowest since December of 2011, in yet another stark sign of the malaise gripping the world's fourth-largest economy.
The long-term average is around 22 and the -44.1 print made a mock
Is this the cleansing of zombie companies and a return to fiscal rectitude that everyone has been clambering for? And now that it is here we fear the pain that accompanies the cleansing? Perhaps Germany’s commitment to a balanced budget should be celebrated for its bravery in the face of what it must know is a coming painful time.