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Thread: Apparently The Marching Blondes Didn't Work, As The Latvian Economy Shrinks 19%

  1. #1

    Apparently The Marching Blondes Didn't Work, As The Latvian Economy Shrinks 19%



    Remember earlier this year when Latvian blondes decided to hold a march to lift the spirits of Latvia and rescue its economy? It didn't work.

    -----

    RIGA, Latvia (AP) — Latvia's economy shed 19 percent of its value in the third quarter compared with a year earlier, the country's statistics agency said Wednesday, highlighting the woes in the European Union's worst economy.

    Latvian Statistics said that the third quarter fall in gross domestic product was led by a severe drop in retail trade, down 28.7 percent year-on-year, and construction, down 36 percent.

    From January to September Latvia, which is suffering its worst recession on record, saw its economy shrink a total 18.6 percent, the agency said.

    The Baltic state is undergoing a drastic correction after four years of stellar growth that followed the country's membership to the EU. In 2006 the economy grew a dizzying 12.2 percent.

    In the past year, however, Latvia's government has been forced to slash expenditures, raise taxes, and sign onto an emergency bailout loan worth euro7.5 billion ($11 billion) with international lenders in order to prevent bankruptcy.

    Unemployment, meanwhile, continues to climb, and last week Eurostat, the EU's statistics agency, said Latvia has the highest rate of joblessness in the bloc, at 20.9 percent.

    Government officials and economists have said the economy would hit the lowest point sometime this winter, with economic growth likely to resume in 2011.

    Latvia's GDP is expected to fall approximately 18 percent this year, and another 4 percent in 2010.

    Last edited by bobbyw24; 12-09-2009 at 09:56 AM.



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  3. #2
    Who woulda known that hot blondes can't cure the economy ;/
    School of Salamanca - School of Austrian Economics - Liberty, Private Property, Free-Markets, Voluntaryist, Agorist. le monde va de lui même

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  4. #3
    Quote Originally Posted by Austrian Econ Disciple View Post
    Who woulda known that hot blondes can't cure the economy ;/
    Yes, they dont, but I dont mind if they keep marching.

  5. #4

    European Central Bank Privately Worries Baltics Are The Next Debt Crisis

    While the banks latest December monthly report implies that struggling Baltic economies are on the mend, the ECB is actually far more worried about the Baltics according to confidential documents acquired by Bloomberg.

    Essentially, the bank is worried that Baltic countries could be on the verge a new debt crisis, partly due to their pegged currencies.

    Bloomberg: “the authorities in the Baltic states may not be able to prevent a renewed emergence of macro-economic imbalances and a repetition of the boom-bust cycle,” the ECB said in a document dated Nov. 17 and prepared for a meeting of the EU’s economic and finance committee.

    ...

    “The experience of the Baltic states suggests that, for countries that have opted for pegging tightly their exchange rates, there is a significant risk that relatively low interest rates lead to excessive domestic borrowing and the emergence of asset price bubbles,” the ECB said.

    ...

    The boom-to-bust fate of the Baltic states has been exacerbated by euro-denominated borrowing since the countries joined the EU more than five years ago. That’s obliged central banks to stick more rigorously to their euro pegs or risk leaving households and businesses unable to service their debt.

    http://www.businessinsider.com/europ...crisis-2009-12

  6. #5
    I fully understand that this will not work here. But I figure it is worth a shot. I think we should also have a Hot Brunette and Hot Red Head marching day. I know it would raise my spirits, among other things.

    Sincerely,

    Slutter McGee

  7. #6
    Quote Originally Posted by Slutter McGee View Post
    I fully understand that this will not work here. But I figure it is worth a shot. I think we should also have a Hot Brunette and Hot Red Head marching day. I know it would raise my spirits, among other things.

    Sincerely,

    Slutter McGee
    Anyone have Tiger's number? He can arrange for his girls to come to the march

  8. #7
    You guys have this all wrong. It's not that the marching blondes didn't work, it's that the blondes didn't march enough. If we had a one-a-day march, then clearly the Latvian economy would grow spectacularly!



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