Germany is facing a “Lehman Brothers” collapse in its energy market that could spark a domino effect leading to a severe recession should the gas-addicted economic powerhouse of the European Union be fully cut off from Russian energy supplies.
Economy Minister and Vice-Chancellor Robert Habeck said on Friday that Europe’s largest economy could be forced to shut down certain industries should gas supplies run think by the winter.
“Companies would have to stop production, lay off their workers, supply chains would collapse, people would go into debt to pay their heating bills, that people would become poorer,” he said according to DW.
The Green Party politician warned that there could be “a kind of Lehman-Brothers effect in the energy market,” spreading through municipal utilities, industrial and commercial companies, “And then you have a domino effect that would lead to a severe recession.”
Habeck was referring to the now defunct financial services firm Lehman Brothers, whose bankruptcy marked a pivotal moment in the Global Financial Crisis of 2008. The impact of Lehman’s collapse was particularly widespread due to the interconnectedness of its balance sheets with other banks, insurance companies, hedge funds, and other financial institutions. Many believe that the U.S. government made a critical mistake in allowing Lehman to fail and that the failure worsened the crisis and subsequent economic calamity. Others, however, have said that not rescuing Lehman was necessary and actually improved the financial system and prevent a worse economic outcome.
at least it was cheap while it lasted >In 2000, the First Schröder cabinet, consisting of the SPD and Alliance '90/The Greens, officially announced its intention to phase out the use of nuclear energy. The power plants in Stade and in Obrigheim were turned off on 14 November 2003, and 11 May 2005, respectively. The plants' dismantling was scheduled to begin in 2007.[46]
>Since leaving public office, Schröder has worked for Russian state-owned energy companies, including Nord Stream AG, Rosneft, and Gazprom.[1][2]
Austin Reyes
Just stop the sanctions and pay the gas bill in rubles or gold. This is a fucking self-inlficted problem and I am fucking sick of them bitching over it.
Benjamin Ross
This. Their problems are of their own making and have very simple solutions, pay in rubles, drop the sanctions, and quit antagonizing russia. At this point i hope they collapse just so they can shut the fuck up about everything.
Jeremiah Cruz
>"1.5% of the world economy" >"Russian economy is the size of Texas / Italy / Spain" >"let's declare an all out economic war to it and do blitzkrieg" >"what could possibly go wrong?" ahahahahahaha
Dominic Roberts
I'm glad even the people who will get drafted into the war that this will lead to find this funny
Thomas Robinson
The jew screams out as it hits you in the face.
Tyler Mitchell
They aren't bitching about it they are preparing people for the "measures" they're going to have to take before 2030. Of course this was all intentional, nobody is this retarded.
