Punxatawny Philippe: Six More Quarters of Economic Winter in Europe

Okay, there is no French 'marmotte d'Amérique' popping up to see his shadow and forecast the end of economic winter. There is however Citigroup, via FT Alphaville (Thurs. Dec. 8) :

Whatever is decided at the Save the Euro summit, it seems certain the eurozone is heading into recession.
But not just any recession, this will be a protracted one reckons Citigroup.

Our economists believe the sovereign debt and banking crises are causing a renewed recession in the Euro Area. Beginning in 4Q 2012 [Sic], they forecast real GDP to contract for 6 consecutive quarters. It is expected to be an especially protracted recession. Not even in Japan, during its lost decades, did real GDP decline for 6 consecutive quarters. Our economists’ Euro Zone forecasts imply real GDP will be some way below the trend established during the first 10 years of Euro inception (Figure 3) and not get back to previous peak levels for many years to come.

Wow.

“Not even in Japan, during its lost decades, did real GDP decline for 6 consecutive quarters”. That’s bad.
So, the obvious next question is, who will most affected?....MORE

Here's Bill Murray on French majors: