Germany: Experts fear recession

BERLIN, Oct. 6 (UPI) -- Top German economic experts are now warning of a recession in Germany.

Europe "won't be spared from a recession," said Norbert Walter, chief economist of Deutsche Bank. "Too much has gone wrong."

Most German economic institutes have said the country's economic growth will slow down as a result of the U.S. financial crisis, but few have predicted a recession.

It now surfaced that several banks in Germany are also in need of financial support. Germany's government announced plans to help out Hypo Real Estate, a German company that has taken a beating because it invested in U.S. housing properties.

German Finance Minister Peer Steinbrueck has been praised for his cool-headed crisis management.

A European bailout mimicking the one that was passed by the U.S. Congress Friday is out of the question, however.

"I don't know anyone who is seriously proposing" such a European bailout, German government spokesman Thomas Steg said earlier this week in Berlin.

Deutsche Bank Chief Executive Officer Josef Ackermann instead said Europe should be ready for "all eventualities" and at least discuss such an idea.