Germany Confidence Rising – Keine Gehäuse Bubble
Very interesting observation by Global Macro Monitor. From here: http://macromon.wordpress.com/2011/02/07/germany-rising-keine-gehause-bubble/. I had read previously that the housing bubble really never affected Germany, but I had never seen a chart depicting how true that was, especially in comparison to other Eurozone countries.
Also mentioned is the Ifo Business Climate Index that porte points to in posts and comments.
Germany Rising – Keine Gehäuse Bubble
Posted on February 7, 2011 by macromon
The latest Economist reports the Germans are the most optimistic they have been since 2000 and business confidence is at its highest level since the Ifo institute began tracking it 20 years ago. The Economist writes,
What’s Germany’s secret? It helps that the country did not experience a property or credit bubble, and that it has kept its public finances admirably under control. But above all Germany’s success has been export-driven: unlike most other big rich economies it has maintained its share of world exports over the past decade, even as China has risen.
No housing bubble and an export driven economy. Here’s a chart which provides a sense of why the Germans are so incensed at bailing out their Eurozone brethren. They’re paying for the cleanup for a party they didn’t attend. German house prices basically flatlined during the great global housing bubble. (click here if chart is not observable)