Saturday 17 November 2012

EU dips into recession. Is the US next ?





Yesterday, EuroStat, the European Union’s statistics office, released their Q3 2012 read on the 17-nation combine GDP showing a quarter-to-quarter decline of 0.1%, tipping the group squarely (though possibly temporarily due to future revisions) into recession, as economic conditions worsened and continued from the prior quarter’s -0.2% reading.

'SoldAtTheTop' is not a pessimist by nature but a true skeptic and realist who prefers solid and sustained evidence of fundamental economic recovery to 'Goldilocks,' 'Green Shoots,' 'Mustard Seeds,' and wholesale speculation.

Jobs report: 3 views on the best way to create jobs in the US
6 tips for new workers from 'The Young Professional's Survival Guide'

While recession for Europe is no surprise, given all the attention that has been directed to the crisis economies of Greece, Spain, Italy, and Portugal and the broader weakness elsewhere in the European Union, it should also be clear that the U.S. faces nearly identical prospects as the burdens of government overreach take their toll on macroeconomic conditions.

RELATED: For these four nations, 2012 is worse than the Great Recession

Further, while the U.S. generally prides itself on having more robust economic conditions than Europe, comparing the quarterly growth rates, one can easily see that for over a decade now, our economic conditions have, more or less, trended together.

So this begs the question, how long can the U.S. expect to buck the trend?

Unless you expect notable improvement in future quarters, it would appear that the European Union’s poor conditions are just another harbinger of larger global underperformance that could crush the U.S.’s tepid recovery.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs.



Greenspan Says Recession Cheap Price to Fix Fiscal Policy
Bloomberg
Allowing taxes to rise would be a small price to pay to get U.S. lawmakers to accept spending cuts on entitlement programs, even if it leads to a “moderate recession,” former Federal Reserve Chairman Alan Greenspan said today during an interview on ...
See all stories on this topic »
EU dips into recession. Is the US next?
Christian Science Monitor (blog)
Yesterday, EuroStat, the European Union's statistics office, released their Q3 2012 read on the 17-nation combine GDP showing a quarter-to-quarter decline of 0.1%, tipping the group squarely (though possibly temporarily due to future revisions) into ...
See all stories on this topic »

Christian Science Monitor (blog)
Recession? UPS Laughs at Your Recession
Motley Fool
For all the talk that the U.S. is in a recession, or even just a slow growth recovery, there's at least one segment of the business world that seems totally unfazed, and happy to raise its prices year-in and year-out: the shipping business. In ...
See all stories on this topic »
PRECIOUS-Gold down for week on recession, fiscal crisis fears
Reuters
News that the euro zone swung into a recession, disappointing U.S. economic data and Federal Reserve Chairman Ben Bernanke's negative outlook on the housing recovery all kept pressure on gold. Gold sagged as the S&P 500 equities index was on track ...
See all stories on this topic »
Eurozone slides back into recession
Alpena News
And with surveys pointing to increasingly depressed conditions across the 17-member group at a time of austerity and high unemployment, the recession is forecast to deepen, and make the debt crisis — which has been calmer of late — even more ...
See all stories on this topic »
Japan seen in mild recession, recovery expected in Q1
Reuters
TOKYO | Fri Nov 16, 2012 5:16am EST. TOKYO (Reuters) - Japan's export-reliant economy is probably in recession due to faltering global demand and a diplomatic row with China, but a recovery is likely in the first quarter of next year, a Reuters poll ...
See all stories on this topic »
Will The Recession Blight Spread To England Next?
Seeking Alpha
Had it not been for the London Summer Olympics, which provided a spurt of summer economic activity, Britain might be on the cusp of another recession. Still with the EU debt issues not going away, and the U.S. only commencing to negotiate the ...
See all stories on this topic »
Obama Fiscal Cliff Deal Risks Brush With Recession
Investor's Business Daily (blog)
Even if President Obama gets most of what he has demanded from Congress in a fiscal cliff deal — an unlikely prospect before the New Year — economic growth will grind to a near-halt in the opening months of 2013. The nation might skirt a first-half ...
See all stories on this topic »
Looming Fiscal Cliff, European Recession & Mideast Violence Pull Stocks Lower
Forbes
Fears surrounding the Fiscal Cliff, official recession in Europe, and violence in the Middle East pulled stocks down for a second straight week. Apple, which plays a critical role in the performance and sentiment of so many fund managers and individual ...
See all stories on this topic »
World stocks flat on Europe, US woes; Japan gains
San Francisco Chronicle
BANGKOK (AP) — Trading on world stock markets was lethargic Friday after data showed Europe slipped back into recession and several big U.S. retailers disappointed investors with weak forecasts. The European Union's statistics agency said Thursday ...
See all stories on this topic »

No comments:

Post a Comment