Wednesday, February 22, 2012

Eurozone Economy on Verge of Second Recession

As predicted, the Eurozone economy seems poised for another contraction. Check it out.

France and Germany, the bloc's two biggest economies and drivers of growth, failed to grow at all last quarter; overall eurzone unemployment is at 10.4%, with core inflation running at 1.9%.

I especially like this quote: "The euro zone economy contracted 0.3 percent in the dying months of 2011 so a second quarter of contraction would meet the technical definition of recession."

Recession is looming and inflation is low; now it the textbook time for expansionary policies. The message everyone European should be sending to their policy makers is this: Expansionary Policies Now!

Mario Draghi, you're on deck. 

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