Grim news for the global economy. Germany’s gross domestic product shrank by 0.2 percent in the third quarter, a contraction that corresponds with falling industrial growth and new orders. Coincidentally, the German central bank released its Financial Stability Review, which said the bank would be particularly vulnerable to a surprise recession and an attendant collapse in asset prices. Japan’s economy also contracted by 1.2 percent in the third quarter and by 0.3 percent on the year. Growth rates in China, Taiwan and South Korea have also slumped, and though industrial output in China has picked up, retail sales dropped to a 10-month low. Meanwhile, what began as a gradual, monthlong decline in oil prices has become a rout, with the price of Brent crude falling by nearly 10 percent after having already dropped by 10 percent in the past 30 days. The price now stands between $66 and $67 a barrel.
But the sky isn’t falling just yet. Some of the negative indicators for the Germa