Europe (minus Germany) looks more like post-bubble Japan each month.
The long-feared credit crunch has mutated instead into a collapse in DEMAND for loans. Households and firms are comatose, or scared stiff, in a string of countries.
My own take is this:
The population is growing older all of the time. Thus there is no longer the pressure to “Buy things” just because. That means there is less need to borrow for major purchases because they have already done so.
There is also little or no need to move with the older populace. In Europe if you have a job it’s nearly impossible to be fired from it or laid-off. If you don’t have a job then you are on the dole and therefore have no pressure on owning your residence as the welfare-state will provide that for you.
Public transportation is everywhere therefore only the “rich” need or can afford a new car and since they probably already own at least one and the quality of European autos is so high there is no need to buy a new one anytime soon if you already own one.
These are just a few of the things that come to mind but the bottom line is this: Why borrow money in uncertain times if your current needs have already been met. Only the need for consumables will be constant, food, some clothing, Medical, Electricity, water, etc.
Socialism fails every time its tried.