Investment Contrarians Expert Reports: Recent Data on Germany’s Industrial Production Suggest Eurozone Financial Crisis Is Spreading

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In a recent Investment Contrarians article, editor and financial expert Sasha Cekerevac reports that Germany’s industrial production in September fell by 1.8%, while intermediate goods declined 2.2% and capital goods declined 3.5% in September on a monthly basis. (Source: “German industry output drops in Sept, manufacturing weighs,” Reuters, November 7, 2012.) He notes that while some people have been optimistic that the financial crisis within the eurozone has turned the corner, this new evidence points to the contrary. According to Cekerevac, the latest information from the eurozone shows just how weak the continent is and how much damage the financial crisis has done to its economic union as the crisis spreads.

Investment Contrarians Expert Reports: Recent Data on Germany’s Industrial Production Suggest Eurozone Financial Crisis Is Spreading

Investment Contrarians Expert Reports: Recent Data on Germany’s Industrial Production Suggest Eurozone Financial Crisis Is Spreading

Germany has been the strongest member within the eurozone, holding up in the face of the financial crisis in the weaker periphery countries

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In a recent Investment Contrarians article, editor and financial expert Sasha Cekerevac reports that Germany’s industrial production in September fell by 1.8%, while intermediate goods declined 2.2% and capital goods declined 3.5% in September on a monthly basis. (Source: “German industry output drops in Sept, manufacturing weighs,” Reuters, November 7, 2012.) He notes that while some people have been optimistic that the financial crisis within the eurozone has turned the corner, this new evidence points to the contrary. According to Cekerevac, the latest information from the eurozone shows just how weak the continent is and how much damage the financial crisis has done to its economic union as the crisis spreads.

“Germany has been the strongest member within the eurozone, holding up in the face of the financial crisis in the weaker periphery countries,” states Cekerevac. “Recent data point to the fact that even the strongest members of the eurozone are succumbing to the financial crisis as it spreads across the borders.”

The Investment Contrarians editor notes that Germany’s Economy Ministry stated that it believes its nation will experience weaker economic conditions over the winter period. With output decreasing and exports to other eurozone members declining, the Ministry stated that it doesn’t believe Asian demand will be enough to counteract the weakness from the other eurozone members, cites Cekerevac. (Source: “German Growth Set to Slow as Eurozone Crisis Hits Home,” Reuters, November 9, 2012.)

While Cekerevac notes that the backstop to the financial crisis in the eurozone has been the European Central Bank (ECB), he reports that ECB President Mario Draghi recently stated that the ECB couldn’t do much more to stop the financial crisis from escalating, stating “The ECB is by and large done.” (Source: “Draghi open to ECB rate cut, done helping Greece,” Reuters, November 8, 2012.)

“If the eurozone were to crumble, the financial crisis would not be limited to just that union,” Cekerevac points out. He reasons, “Many institutions in America have exposure to the eurozone. No one can accurately predict the ramifications of the eurozone deteriorating in a panicked fashion; but if a financial crisis were to break out, its impact on America would most likely be quite severe.”

The Investment Contrarians expert concludes that while he hopes that the eurozone members can get their act together and prevent the financial crisis from erupting, he sees no signs of a resolution anytime soon.

To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.

Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.

After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.

Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.

Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.

George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.

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