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How does this fit with the observation of the German DAX going from 12,000 (during pandemic even below 9k shortly) to currently 18,000? Can anyone give a good explanation?
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.
Do you know anything about the current or former German governments?
Earlier quoted context omitted.
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…
> We estimate the ten-year cost of the legislation and executive actions President Trump signed into law was about $8.4 trillion, with interest. Yep, nothing to do with trump. https://www.crfb.org/blogs/how-much-did-president-trump-add-...
Otherwise, you are, despite your sarcasm, stating the truth. Nevertheless it might behoove you to learn more about how the US system operates. Like Biden after him and Obama before him, Trump had the choice to either sign the continuing resolutions that Congress sent him, or to refuse to fund the government altogether. This is something called Hobson’s choice and it’s not really a choice at all.
How does this fit with the observation of the German DAX going from 12,000 (during pandemic even below 9k shortly) to currently 18,000? Can anyone give a good explanation?
Earlier quoted context omitted.
is there any reason why this post is voted down?
because of the 'panic pessimistic breaking news everywhere', I guess. Somehow people want to believe that it's all really THAT bad and not that we are managing those hard times quite okay-ish
1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their risks and downsides. Security, reliance on the government for problem solving and tall poppy syndrome are paramount.
2) Overly complex civic systems. Germans always were famous for their bureaucracy. But government interference in the most minute details of running a business, endless red tape and micro regulations have made it largely impossible to be competitive on the international stage.
3) Poor Work Ethic. What? The Germans? Aren’t they known to be the hard working ones? Well - somehow, our trains are also known to be the punctual ones. These cliches might have been true during the “Wirtschaftswunder” - but today, Germans work the fewest hours of any OECD country.
4) Climate Focus. Germany’s government is focused on a largely ideologically driven understanding of climate change prevention. It’s not just that Russian gas is no longer available - in addition all nuclear power plants were shut off. Climate regulation and taxation also adds to rising energy prices and production costs.
5) Worker Rights: Germany has very high levels of worker protections, making it hard to scale workforces up and down and near impossible to dismiss employees for performance reasons.
6) High Taxes. Germany has some of the highest corporation and personal income taxes in the developed world. And while e.g. Scandinavian countries have even higher taxes, in Germany it doesn’t feel like you’re getting something of equal value back from the state. This is of course highly subjective.
7) Few Future Industries. Germany’s industry has focused on gas powered mobility and advanced machine building - and has become a world leader in many of these areas. It has, however, very few software, AI, or other companies that make up the bulk of e.g. the US economic growth.
There’s probably many more - but this might paint a picture from the inside.
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…
Not only does the article mention that "They are also 11.2% more than in the first quarter of 2020 when 4,683 corporate insolvencies were filed before the COVID-19 pandemic had its full impact. The coronavirus pandemic period itself saw special, temporary regulations introduced and low insolvency rates." Your own statista link shows that the number of bankruptcies was steadily decreasing between 2010-2019, now it's g…
So finally it is some kind of a cleanup. But it doesn't mean that the bankruptcy numbers soar.
Try to take a look into the startup arena. Does the number of bankruptcies in startups soar, because the time of cheap money is over? Or is it more that the numbers are coming back into a normal level and in the last years of cheap money, it was too easy to keep companies afloat, which never really had a sustainable business model.
As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…
German's pay a lot of taxes. Living costs and rent are sky high in cities. In the past, I reduced my hours to 28 hours a week because the difference was negligible in taxes paid. I even got money from the government to pay rent because my wage was lower.
There is a real problem where between salary band's, the money after taxes does not change significantly even if you're paid more. Working half a day only is incredibly popular for these reasons (among others). It's gone so far that politicans from all sides are publicly thinking about erasing the possibility for halftime work.
How does this fit with the observation of the German DAX going from 12,000 (during pandemic even below 9k shortly) to currently 18,000? Can anyone give a good explanation?
As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…
I would also add that I have seen a determined anti-education attitude, especially against STEM education. In stark distinction STEM careers are usually considered "lower class" than civil service careers. This is combined with a truly bizarre anti-education stance by education ministers, who see technology not as something which requires a more educated population, but rather means basic education is less important as "computers can do that".
I also completely disagree on work ethic. In my experience Germans want less hours and more work from home, but are willing to be extremely productive in that time frame.