Another swipe at the Huns

Is Germany's disagreement over stimulus spending just a matter of differences with timing?

The folks in New York pointed out yesterday that the US unemployment rate has always led the Germans. With nothing different expected this time around, given the current trajectory of US unemployment we'll see German unemployment soon breaking above 10 and possibly even into the teens. We'll see what they think of stimulus spending then.

The U.S., due to its more flexible private sector, is ahead of the curve than Europe. If the continentals are forgetting this inconvenient fact, we're certainly seeing a reminder today.


U.S.


Germany

Source: Bloomberg