FRANKFURT, Germany (AP) — The European Central Bank has cut two key interest rates, one of them into negative territory — a highly unusual step that underlines the urgency of its efforts to keep the eurozone economy from sliding into crippling deflation.
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It reduced its main interest rate, the refinancing rate, from a record low of 0.25 percent to 0.15 percent. More drastically, it also cut the rate it pays on money deposited by banks from zero to minus 0.1 in the hope of pushing the banks to lend money rather than hoard it.
[quote=joec]Maybe the EU can loan money to Americans with no doc loans to inflate their currency…I wouldn’t mind getting a loan for any purpose at a low rate.[/quote]
You know. That would be interesting if they started offering 1.0% fixed rate loans to us Americans… Sign me up…
I wonder what this mean for rich(er) europeans… I suspect a lot more borrowing to buy a lot more assets, sort of like what happened here…..
I didn’t know negative interest rate is even an option. That’s very interesting to know. I wouldn’t mind getting a 1% fixed rate either, although, I doubt that would happen. Regardless, I feel like central banks around the world are starting to try and push for more inflation.
Hopefully this will be balanced out in sum by the positive effects of the Fed’s tapering. As to 1% loans to Americans, most Americans would be too damn stupid to be responsible with that money.
Yay for more Mickey Dee’s, McMansions, and autotragic cars.
[quote=spdrun]Hopefully this will be balanced out in sum by the positive effects of the Fed’s tapering. As to 1% loans to Americans, most Americans would be too damn stupid to be responsible with that money.
Yay for more Mickey Dee’s, McMansions, and autotragic cars.[/quote]I don’t give a flying f*ck whether most Americans would be responsible. All I care about is me. I will be able to get 1% fixed for my primary and rental and since there will be more demand for stuff, yay for higher prices. I’m benefiting from both side and that’s all I care about.
An even more wishful scenario would be we’ll see another housing bubble that’s bigger than the last. I will cash out and buy back when it crater even harder. This time, I’ll go all in.
Nah, my amusing doomsday scenario is a certain East European country going into full-on blowup mode combined with another tough US winter/recession right after QE is tapered, and while the Fed cogitates what to do next. Why wait for another bubble before things crash down?
[quote=spdrun]Why wait for another bubble before things crash down?[/quote]
So I can sell all of my houses at insane prices and rent, while waiting for the crash.
My stocks are doing well to be sure (I don’t short). This being said, hope the stock markets get pimp-slapped like a manwhore who blew all his money on coke after the next (June 19, BABY!) taper.
And glad that the NJ property market is going nowhere fast. Lookin’ at some “more-closures, baby” this weekend.
[quote=AN][quote=spdrun]Why wait for another bubble before things crash down?[/quote]
So I can sell all of my houses at insane prices and rent, while waiting for the crash.[/quote]
Do you think you’ll know where the top of the bubble is and when it’s going to crash? What if the top of this current bubble is in the next 3-6 months?
