Good News In Germany

Yglesias:

Germany's unemployment rate just hit its lowest level since reunification. Americans keep warning that the destruction of spending power in southern Europe is going to crush the German export engine, but apparently Germany's been able to make it up with exports to fast-growing developing countries. Brazil, India, and China are just as good a market for new cars as Italy and Spain.

I don't think we should wholly discount the possibility that Germany can keep this trend together even if huges swathes of the continent fall into a depression. Among other things, the current situation strongly encourages the most talented Italian, Portugese, Irish, Greek, and Spanish workers to move to Germany which would further boost the German economy.

Hopefully, things will work out for the Germans, but I would think a deep recession in Europe will still be pretty damaging to Germany.