Germany sees company bankruptcies soar

Post by hobs » Fri, Jun 14, 2024, 12:38 PM UTC

User23 wrote: post #14

lkramer wrote: post #7

Earlier quoted context omitted.

I am not American, and I don't know all the finer details, but weren't a lot of the inflation issues post covid a direct result of Trump's unrestrained borrowing even in a growth economy, all in the name of keeping the stock markets growing as your primary indicator of economic success a big factor? Certainly looking at the UK economy, I can trace back the source of our current problems well beyond the current electi…

No, this has nothing to do with Trump. The USA has been in “unrestrained borrowing” because it’s been funding itself with continuing resolutions rather than a budget since 2009. That means that the extra trillion dollars in 2009 “temporary” stimulus has been added to the debt every year since on top of the prior trajectory. This is easily seen if you look at the relevant graphs on FRED. That said, government borrowin…

Post by jojobas » Fri, Jun 14, 2024, 12:40 PM UTC

HPsquared wrote: post #15

PinguTS wrote: post #6

The article focuses only on the near time statistics and is missing out the long term statistics as well as effects of the COVID19 pandemic. The effects of the COVID19 pandemic were that the bankruptcies law was temporarily changed, which had the effect that companies that were already on a way to bankruptcy could live longer. That is also the reason why in 2020 the numbers were at a low point for almost 20 years. Th…

Financial journalism that reports a single data point, out of context, without even a historical chart, are a pet peeve of mine. Even worse if they spin a complicated narrative based on this single data point that isn't supported by the broader context.

Post by InDubioProRubio » Fri, Jun 14, 2024, 12:42 PM UTC

ivan_gammel wrote: post #28

andersa wrote: post #24

Of course, we have an energy crisis and too much bureaucracy. Who in their right mind would want to run a company here?

Existing businesses could still exist, but Germans are often too risk-averse to adapt to new reality. I have read about a large bakery which closed because of relatively small increase in operational costs: it didn’t make sense to me as he did not try to change anything to save the business, but the owner was too pissed with good old times being gone forever. In countries like Russia he would be laughed at. The good…

Post by lyu07282 » Fri, Jun 14, 2024, 12:44 PM UTC

itsoktocry wrote: post #26

snowpid wrote: post #17

Earlier quoted context omitted.

is there any reason why this post is voted down?

> is there any reason why this post is voted down? Because it presumes the only reason people are voting "right-wing" is because they are reading "doomsday news". Versus, you know, disagreeing with the way the "left wing" have been running things. Not sure why the left are going with "You're not poor, look at these charts" as a political strategy, but unsurprisingly, people aren't buying it...the world over.

Post by tchalla » Fri, Jun 14, 2024, 12:50 PM UTC

PinguTS wrote: post #6

The article focuses only on the near time statistics and is missing out the long term statistics as well as effects of the COVID19 pandemic. The effects of the COVID19 pandemic were that the bankruptcies law was temporarily changed, which had the effect that companies that were already on a way to bankruptcy could live longer. That is also the reason why in 2020 the numbers were at a low point for almost 20 years. Th…