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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 382.87-0.8%Nov 13 4:00 PM EST

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To: energyplay who wrote (565)9/18/2005 9:29:31 AM
From: critical_mass  Read Replies (1) of 217753
 
A couple of things to point out:

1. Germany exports more than any other country.

2. Germany's Xetra DAX and "Neu Markt" experienced almost the same type of behavior as the DJIA and NASDAQ back in 2000-2001, but the real estate "echo bubble" so often discussed on these SI boards has not inflated in Germany. Real estate prices, and personal debt have been relatively stable over the past 5 years.

3. East Germany has experienced some success stories where capital funds self sustaining businesses instead of capital scooping up distressed assets in a crony capitalist manner.

For example, Infineon, DuPont, and AMD chip plants in Dresden. BMW factory in Leipzig, Smart Car and VW plants in Dresden.

Plans for a chip plant with investors from the middle east, Intel and incentives from the German government were abandoned midstream for a site located in Frankfurt Am Oder.

Schröder has pushed through many reforms, which is why he lost popularity and support from within his political base. Merkel and Schröder respective reforms are not that far apart.

According to an article in the current edition of the Economist, Schröder would cut corporate taxes more than Merkel. Merkel would cut the unemployment insurance more than Schröder, but raise the VAT by 2%.

Things are not that bad in Germany, despite constant calls for reform from the outside.
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