This news to the effect that German consumers actually reduced their outstanding debt is deeply significant in my view. What it reflects is what needs to be analysed:
“German private households ignored the attractions of historically-low interest rates and for the first time paid back more money than they borrowed last year.
The net credit repayment reported by the Bundesbank, Germany’s central bank, on Monday reflected the high level of consumer insecurity in Europe’s largest economy. It contrasted with the strong credit growth in other European countries, which has boosted consumer spending.
?There is nowhere else where a country comes even close to such weak growth rates,? said Julian Callow, economist at Barclays Capital.“
I have a very good idea what this means. Or even better, what it implies about future expectations.
Could it be the German public is getting aware or is it just a general feeling of insecurity?
Deflation here we come. When will ECB cut rates?
“Deflation here we come.”
Sorry (LoL) the only thing I can manage is hysterical laughter, it’s so obvious isn’t it.
I really don’t know whether to laugh or cry.