Thursday, May 23, 2013

Let's Be Honest About Europe: They're In a Depression

For the last five quarters, the GDPs annual growth rate and been negative.  More importantly, it's getting worse.

The quarterly rate of growth has been negative for six straight quarters.

While the rate of contraction is mild by historical comparison (most depressions see larger percentage contractions), the bottom line is growth has not existed in this region for over a year.

From hereon, I will be referring to the EU's economic situation as a depression.  There is no other way to describe it.