by Michael Smith (Veshengro)
The German and French governments have both announced that the recession is basically over for their respective countries.
However, this is not the case for Britain and nor, so it would seem, for the United States.
While the growth in both Germany and France are but modest and some idiots keep claiming that Britain is out of the recession as well this is no way the truth.
France and Germany coming out of the recession now because they did not have the same problems with the housing market and the financial sector. While at the hight of the housing bubble one house in London would buy you five in Berlin. No wonder the British economy fell that deep.
Also, Britain basically destroyed all manufacturing industry, the mining industry and such and dedicated the economy to service sector and especially banking. Hence the big problems that we are encountering in Britain as far as the recession goes.
Banking fell on its face, in its various forms and everything else is suffering as no one can get any loans for business setup and other purposes and venture capital has all but dried up, as far as banks are concerned, as has private lending for whatever.
Having said that too many people have been and are still living well beyond their means and still pile up more and more dept onto their credit cards. We cannot continue, as individuals, as well as as countries, go living well beyond our means.
One day the loans will become due and the the *&^% will hit the proverbial air moving device. But this seems to be something that neither individuals not governments seem to understand.
Bankruptcy of individual people and companies in one thing but what happens when a country goes bankrupt? I dread to think...
© 2009
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Germany & France claim recession over, for them
