So the news coming out of the mainstream media speaks of recovery, hope and a brighter future. Just as our leaders and economists hide the fact that America is in a depression, one must look across the pond and see what dark pools of economic debris now saunter through Southern Europe as they head for more dreaded “credit events” i.e. bank runs.
What you are about to read will surprise many. The lipstick is quickly being scraped off the pig and the pig is looking gaunt. Read the following twenty reasons why Europe is in a growing depression:
#1 The unemployment rate in France has surged to 10.6 percent and the number of jobless claims in that country recently set a new all-time record.
#2 Unemployment in the eurozone as a whole is sitting at an all-time record of 12 percent.
#3 Two years ago, Portugal’s unemployment rate was about 12 percent. Today, it is about 17 percent.
#4 The unemployment rate in Spain has set a new all-time record of 27 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
#5 The unemployment rate among those under the age of 25 in Spain is an astounding 57.2 percent.
#6 The unemployment rate in Greece has set a new all-time record of 27.2 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
#7 The unemployment rate among those under the age of 25 in Greece is a whopping 59.3 percent.
#8 French car sales in March were 16 percent lower than they were one year earlier.
#9 German car sales in March were 17 percent lower than they were one year earlier.
#10 In the Netherlands, consumer debt is now up to about 250 percent of available income.
#11 Industrial production in Italy has fallen by an astounding 25 percent over the past five years.
#12 The number of Spanish firms filing for bankruptcy is 45 percent higher than it was a year ago.
#13 Since 2007, the value of non-performing loans in Europe has increased by 150 percent.
#14 Bank withdrawals in Cyprus during the month of March were double what they were in February even though the banks were closed for half the month.
#15 Due to an absolutely crippling housing crash, there are approximately 3 million vacant homes in Spain today.
#16 Things have gotten so bad in Spain that entire apartment buildings are being overwhelmed by squatters…
A 285-unit apartment complex in Parla, less than half an hour’s drive from Madrid, should be an ideal target for investors seeking cheap property in Spain. Unfortunately, two thirds of the building generates zero revenue because it’s overrun by squatters.
“This is happening all over the country,” said Jose Maria Fraile, the town’s mayor, who estimates only 100 apartments in the block built for the council have rental contracts and not all of those tenants are paying either. “People lost their jobs, they can’t pay mortgages or rent so they lost their homes and this has produced a tide of squatters.”
#17 Child hunger has become so rampant in Greece that teachers are reporting that hungry children are begging their classmates for food.
#18 The debt to GDP ratio in Italy is now up to 136 percent.
#19 25 percent of all banking assets in the UK are in banks that are leveraged at least 40 to 1.
#20 German banking giant Deutsche Bank has more than 55 trillion euros (which is more than 72 trillion dollars) of exposure to derivatives. But the GDP of Germany for an entire year is only about 2.7 trillion euros.
64 Comments
This is one of most important problems facing the world economy, but it is also one of the hardest to understand.
The economic outlook for the European Union has deteriorated and the recession and unemployment blighting the euro area are expected to worsen
The bank remains unwilling or unable to wield the more powerful weapons that many economists say are needed to jolt Europe out of recession
Sad situation, Greece remains in intensive care and will probably exit the Eurozone this year, Spain is still pretty sick, and France is running a bad fever
The leaders fail to discuss that the decline didn’t happen in a short period of time and they want changes, quick, quick and continue to lend to those that couldn’t repay a debt with run up more debt to pay down the previous debt
Unfortunately, Europe is heading for a disaster
It’s a bit of a vicious circle. Europe is pursuing a policy that is self-evidently failing
lower government spending also reduces overall demand for goods and services, weakening the overall economy and the labor market
The jobless crisis is hitting hardest in the south of Europe, Mainly Greece
looks very worrying
this is alarming, unemployment in the eurozone has surged to a fresh record high
unemployment in the currency bloc reached a record high, driven by soaring youth joblessness
The eurozone continues to face major growth headwinds and still has its work cut out to exit recession
the only solution is to get out of this anti-democratic and destructive identities Europe !
Nobody believed in the collapse of the Soviet Union six months before its advent. Europe has become a totalitarian monster that will eventually also by collapsing on itself, and perhaps sooner than we think !
In addition to being hassled for not working, not able to have a so-called normal life, to know that if the situation continues, they will be in poverty at age 60, the unemployed are accused by some to enjoy life at the expense of those who work. How many times they hear “when we seek, we find”, “work, there is that the unemployed do not want to work until you give them welfare ruining the country.”
Two solutions to get out: 1) innovate, innovate and always go to premium markets (what do the Germans who are doing better than other countries) 2) limit immigration to people that Europe desired. This here is the Reason of State. If we want to continue on the same path we take, unemployment continues unabated, Europe is impoverished and unfortunately switch back in third world countries in the longer term
For years this system impoverishes us, especially since we are in euro.
As long as we remain in this system increase unemployment …
For production reparte should customers and clients that’s us!
A force to tighten our belts to banks we are causing our own destruction.
But now think only political reputation
Thomas, your blog is all over France now.You have become known widely for this article.I share my thoughts.The unemployed are my feelings but it was predictable … And the measures taken by Holland it will get worse, the rich can afford to go. Invest in France is uncertain, working and middle classes are strangled by tax, poor France
The education system is not suited to business requirements (Priority for general Bacs, lack of alternation and still too many students trained in sociology, history, etc. ..) and a system is not adapted to our economy .. .! What do our political to revolutionize the system
Demands and lack of talent certainly. Big problem with education, the transmission. Major reforms demanded by firms, the Liberals, the craftsmen education is not adapted to the realities
irreversible increase in unemployment. I’m not more confident for the future of the country! that still on? good old war say! and then pay us as in China to 20 € per day. here you can enjoy your profits
Unemployment continues to rise, yet at the same time, employers have great difficulty recruiting. This is the paradoxical result of talent shortages and skills mismatches
It should take the lobbies of rich and patrons and financiers. It must really tackle finance
And we want to work the old Senior longer! This is laughable!
Germany lack of manpower and recruiting low-cost European emigrants. To your good heart for a passport to misery
We must stop, fast stop, reverse speeds, stop going in reverse, put speed ahead. Otherwise it will get worse
This means that many young people are denied oppportunités in their best years, at an age when they are most receptive to learning
record beaten and it is not finished !
not compatible ….. you must leave this nightmare …. and the euro ..
It’s easier for the wedding,. That work for all. thank you
Is that the problem is already serious and encysted for 40 years in France, would not be exacerbated by Europe itself ?
The euro zone is becoming a large area of the unemployed, which is why the question of who will compensate the growing number of unemployed !
The various stimulus plans decided by European governments demonstrate their inability to agree and act on the crisis with enough force. First, because many are reluctant to aggressively fund Greece, and also because public opinion is opposed to measures that may be required
to everyone who voted for Europe and the opening of borders and a single currency! here is the result, it was expected that the small countries could not follow, and greece is only the beginning, portugal , the italy, spain and soon the France
banks policies mocks us euro is zero
Long live Europe! Since the creation of the Euro, which would bring us growth and jobs, the EU continues to push the unemployment and recession. But of course, it is because we have not gone far enough in European integration. in 10 years, with too elevated for the unemployed in the euro area, which all consume 100% made in China
I’m starting to really ask me questions about “Is there a future for Europe Human”? By cons, for “Financial Europe”, no problem, bankers and big bosses are even richer than before the crisis! Y really something that is not running at all round! To what is going? Extremist to Europe? Or to the annihilation of Europe ?
Should not divert resources from business, which should remain in companies that work and make growth and therefore employment. In short we must let the market do its work Darwinian and not waste the money created by the economy on an unrealistic view of the Economy
Again, it is the employees who “pay” poor management decisions of the Company as if the fault lay with the staff, while the leaders remain in their posts … Often, these companies have the property that they could sell, to overcome the “bad times”, well no, layoffs are “privileged” ….
That’s where clearly lead the austerity policies, gift to employers without control, credit states through banks that largely sweeten the way, not to mention the cut speculation in the real economy
It does not need to subsidize companies that invest in robotics? this is the only way to keep jobs, charges on labor are too high, a robot never gets sick, he worked day and night. So the company favor the robots
Rather than unemployment, underemployment and job insecurity (working poor) would be more meaningful. Because the problem of Europe is not unemployment but misery that wins the continent and whose jobs no longer protects against
The bane of modern years. Unemployment coursing, coursing, and no one has the solution.
This phenomenon apauvrit more households and endangered. Purchasing power decreases to become critical in some countries like Greece, Spain, Italy
It has be necessary to extend the map to the European continent NOT FORMING parties of the European Union … they were all in blue … or very pale blue … how strange …..
less labor is formed, unless she wins and she is unemployed (this is true across countries and within each country)
And that had been presented to us in Europe as the most beautiful thing that can exist … What disappointment !
Behind the harsh reality of these statistical figures, governments are concerned about the violence of unemployment continues to affect young people. Which suggests a lost generation. Greece is the most striking example, registering a catastrophic rate of unemployment
As for France, we keep seeing this phenomenon is increasing more and more, which is the only thing growing in our country. For purchasing power, it continues to deteriorate
Unemployment rises? it is only the consequence of the decline in the purchasing power of largest number … And if we tried the opposite ?
This is especially the pressure of the state and communities that France has mass unemployment since 1981. Look at government spending and taxation since
Europe destroyed! Countries did not grow or evolues together, it’s too late! It may need to be United States of Europe where each state selected policy he wants ! According to the guidelines of a president !! As the usa !
I see that the minimum wage is a cause of unemployment in Europe, the fact that wages and performance are not related
No need for big words to find that unemployment is everywhere
European leaders have erred on the side of optimism, naivete, incompetence and lack of political courage. These characteristics are preparing the worst case scenario worthy of a horror movie …
I call upon the politicians to do everything they can to boost the job market
We must avoid at all costs this europe, the only winners are the political and large companies
Faced with rising unemployment in Europe, we wonder what are the prospects of the EU
We wonder the same here. The media says everything is rosy, but we know that is simply not true.
The politicians cannot achieve this.They can only spout rhetoric.If anything, the politicians caused this depression.
Fantastic response ! I agree !
A 75 percent tax on the wealthy means that France will lose it’s luxury retailers.Think Paris 1788..pre revolution. Massive poverty, the collective mood darkening….
Meriem, we are no better here, no matter what “spin” you read about recovery.It is global smoke and mirrors…
And 51% pf the people work for the Government…Coming soon to the USA as well..
Dadou, yes.. and it is happening in our inner cities as well.It is like a fast growing cancer, consuming all in it’s path. History tells us the only thing that stops depressions like this is war..That seems like a very sad solution…
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