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Central bank: Germans richer than ever

The Local · 25 May 2012, 07:32

Published: 25 May 2012 07:32 GMT+02:00

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The German Central Bank (Bundesbank) said on Thursday that the stable jobs market had helped Germans put away an additional €149 billion last year to create the record total of €4.715 trillion in private holdings - and that sum does not include property.

Germans have been steadily increasing their monetary assets for decades – apart from certain crisis years such as the Lehman bankruptcy and accompanying global financial crisis in 2008, the bank said.

Private monetary assets added up to €1.751 trillion shortly after reunification in 1990, and broke the €4 trillion mark by 2005.

The lion’s share of asset growth was put in banks, the new figures show, with an increase of €67 billion more put into accounts last year than the year before.

Fixed term deposits were up again for the first time since 2008, with an increase of €18 billion – a growth the Bundesbank said was due to the difference in interest rates between them and the deposits on daily rates.

Shares were also more attractive to investors, with an increase of €14 billion put on stocks in 2011 compared with the previous year.

Apart from banks, Germans seem to trust insurance policies, which account for nearly €1.4 trillion of their private assets. Life insurance grew in 2011 by €48 billion.

Story continues below…

But private debt grew alongside private fortunes – particularly due to money borrowed to buy property, which rose by €21 billion to reach €1.55 trillion last year. This was less than the national debt, which was around €2 trillion.

DPA/The Local/hc

The Local (news@thelocal.de)

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Your comments about this article

08:38 May 25, 2012 by catjones
You would never guess this based on the whining € comments here. Apparently, there are plenty of big, bad capitalists living in DL.
13:12 May 25, 2012 by smart2012
another propaganda article. This is in absolute number right? Compare to prior to East Germany unification and by person
15:26 May 25, 2012 by siba
smart2012: you are hillarious. the reunification was 22 years ago, why do you bring it in??! who should do propgaganda and why? we are not in the US where fox news shapes the public opinion. you are paranoid.
16:08 May 25, 2012 by mrcontinental
Adjusted for inflation if the Germans had kept the d-mark and the Dutch the gilder they would be far richer then this now. Massive wealth was vaporized in both countries when they switched to the euro. So yes the article can easily be seen as propaganda since the euro buys so much less then a comparable amount of d-marks would.
16:29 May 25, 2012 by raandy
If the Euro Zone had formed with out the single currency I would wager that Germany and the Netherlands would be in the "dire straits" at this point with way over valued currencies, high unemployment and a much higher GDP to debt ratio.
16:36 May 25, 2012 by hallopeople
Why Germans always better than others?Can you tell us your secret please.We also want success.
16:36 May 25, 2012 by smart2012
Thanks Mr continental :-)

@siba. I guess u still do not see that Bundesbank/Merkel are doing all what they can to show that the EU strategy so far has been a success (I mean Merkozy strategy), while it is not at all, and it became a Global crisis, affecting Germany badly, see latest Zew data! This to get German people believing that changes to EU set up eg Eurobond are not needed and current EU set up is ok... luckily North Rein Werstfalia people, French, Greek, Italian, Dutch, English, American, Chinese, Spanish etc etc already understood it... Well done Merkel!
17:22 May 25, 2012 by siba
smart2012: the statistical date of germany's savings is of no interest of anyone in the EU. it has nothing to do with EU-politics.

as always you bring together things which are not related AND you spread false information. You are so short-sighted. The problems in the EU are not caused by Merkozy. They were there before and without all the bail-out money the EU would have collapsed already. Everyone agrees now that there have to be made plans to push growth in the in-depted countries, austerity is not the only solution.

Main causes of the crises in Spain and Ireland were the housing bubbles, and in Greece a corrupt government which bought the elites and many voters... the Greek government also misused EU-funds and cheated by presenting wrong data... and in addition the financial industry fostered the problems in these countries....

I am not sure about Eurobonds, they are not of any worth if it stops countries to do necessary structural changes. if both goes together, then it is worth a try.

The Dutch are against austerity? They have a neo-liberal government which is totally pro-austerity. The right-wing populist/extreme party just did not want to support it, so the government fell apart. and the new government will - according to polls - be again not left... so no hopes that the Dutch will go back to old days when they were a generous and liberal country.

and not the Germans do propaganda... he e.g. is american and talks about the success of social democratic socities like sweden and germany: watch e.g. Thom Hartmann on youtube "Sweden doesn't mess around!"
18:00 May 25, 2012 by smart2012
@ siba, sorry, but i completely disagree with your explanation. If u tell me that Greece is the cause of the Global crisis, I have to laugh. Greece represents 2-3% of total EU economy, so u are telling me that the problem is Greece???? and spain and ireland have screwed up due to the 2008 bank crisis (including German banks), where economist where investing in bubbles, which then exploded. If u have a good memory, Spain 2-3 years ago was considered to be a booming country and to be taken as an example.

Merkozy has screwed up sorry.. If the Greece problem would have been addressed 1 year ago, now me and u would be talking about soccer, not about economical crisis.

And do not get me wrong, structural changes are needed, however they should have done with a safety wall in the back, while they were not, and North Rein Westfalia (biggest land for population in Germany) is an example.

Then, if Merkel did so good, can u tell me why she lost everywhere ion her election, including her main partner (Sarkozy)?
18:19 May 25, 2012 by pfauder35
hallopeople asked why the Germans are better than others. There are many reasons why you should think and ask this, German engineering is still the best in the world, their cars are the most sought after in the world, They still have a national identity of their own, they do not rely on the USA or other Westen countries to maintain their economic growth.Bottom line is they are the economic powerhouse in Europe.They do not think they are better than others they are respected for what they have achieved after two world wars and then having to unite Millions of East Germans into a united country without little help from other nations to finance the extra millions. They are born leaders and are respected worldwide and they work hard to enjoy what they have worked for.
19:03 May 25, 2012 by smart2012
I need to reply to pfauder35:

Germany lost two wars

Germany rebuilt itself thanks to USA (marshal plan)

Germany unified thanks to other EU countries' support

Read from history
01:21 May 26, 2012 by siba

I did NEVER said that Greece caused a global crisis, I just said that its governments - no matter if left or right - caused most of the problems of today's greece!! greece --> greece, NOT greece --> world

read before commenting, please!

I also did not say that merkozy are great, I would not vote for either of them, but they did not cause the problems of greece or other in-debted nations. but they did not get stuck in arguements and popuism... it could have been much worse with many other leaders!

you are so short-sighted and indifferntiated. you should read history more carefully. Marshal plan was a little thing to what kind of money goes from the EU to many poor regions in Europe. Germany unified not thanks to EU-countries support, the impulse started WITHIN. west-germany paid for most costs, still does via solidaritätszuschlag...

I am a social democrat- or for US people - a socialist. I am in favor of strong governments in all nations to serve the well-being of the people. though there are no easy answers and if euro-bonds, austerity or other measures, nobody really knows what will work and if there is anything that will work. and it is the sam in the US, no real movement regarding its weak economy.

just be more differentiated and not so one-sided. you seem to be so ANTI-german. maybe you are not happy with your life in Germany and project this to your strong opinions against Germany...
04:11 May 26, 2012 by gorongoza
@ pfauder 35.

You sound like one of those mis-informed if not one of those who harbour a deadly virus of mis-conception.
12:29 May 26, 2012 by smart2012
@siba: first of all thanks for the good discussion :-)

u said that corrupted government in greece is the cause of the eu crise (which is now a global crisis), now u say something different: I accept your correction

merkozy: glad to hear, re populism i agree extremists would be worst, however latest elections have demonstrated that merkozy strategy has fueled extremism (le pen, neo n.. in greece etc)

marshal plan: without it germany would not be where it is... disagree with u :-( and when East German deutch mark was unified to West Germany Duetch Mark hance to Euro, this created higher volatility which other countries banks had to buffer with higher interest rate

i am a moderate, and at the moment I am very happy that Hollande won in Fance, and Frau Kraft in NRW :-)

I am not anti german, I am anti bundesbank and anti Merkel! I like very much Herr Schultz head of EU commission
23:30 May 27, 2012 by Deutschguy
what siba said: "Main causes of the crises in Spain and Ireland were the housing bubbles, and in Greece a corrupt government which bought the elites and many voters... the Greek government also misused EU-funds and cheated by presenting wrong data... and in addition the financial industry fostered the problems in these countries...."

He did NOT say the EU crisis was caused by Greece. He said the crisis in Greece was caused by a corrupt government. Big difference.
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