Europe's auto industry is suffering through a long and difficult period of economic stress. The rest of Europe's industries are weak, too. And there's no light at the end of the tunnel.
As a result, that makes it even tougher to fix what ails us in the U.S. It's truly an interconnected world economy. We'll use just one very simple example in the auto business --- selling tires.
Goodyear's Results Fall on Weakness in Europe says this:
"Goodyear Tire & Rubber said its third-quarter net income and revenue dropped on lower tire sales in Europe, setting off a decline of 10 percent in its share price.
The company’s results fell short of Wall Street’s expectations as problems in Europe offset cost cuts and profits in North America.
Its executives said additional cuts were coming because of economic uncertainty. Goodyear’s numbers highlight a problem that is plaguing many global companies in auto-related businesses.
Profits in North America are being offset by falling earnings in Europe as the region’s economy continues to come apart on concerns about government debt."
SUMMING UP
The social-democratic welfare state in Europe is coming apart at the seams.
Hopefully, its lessons won't go unheeded on this side of the pond.
We've ample time to right our ship of state before it goes off the proverbial fiscal cliff.
When election silly season has finally ended in ten short days, maybe our politicians will finally get serious about addressing our problems here in the good old U.S. A.
Let's urge them to do so.
Thanks. Bob.
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