Today Naked Capitalism features a bit by Delusional Economics on the current state of the Eurozone, or to be precise, the widening gap between Germany and the rest of the Eurozone. It is a pity that Finland is not included in Markit’s PMI measurements, because that could be interesting. The piece focuses mostly on France, as it is arguably the most dramatic case at the moment, but the Netherlands also gets a mention:
Rating agency Fitch cut its outlook on the Netherlands’ AAA credit rating to negative on Tuesday, citing worries about falling house prices, the banking system and the high state debt burden.
The other major rating agencies, Moody’s and Standard & Poor’s, have already put their Netherlands’ ratings on a negative outlook. The country is one of just four in the 17-nation euro zone to have kept a full set of top ratings.
“The leveraged Dutch economy has suffered a number of shocks,” Fitch said in a statement.
It pointed to a sharp fall in house prices which it said was worse than it had previously expected. Fitch recently revised its projected peak-to-trough decline to 25 percent from 18 percent, and said this will continue to depress household spending.
– Prolonged economic stagnation and rising unemployment