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  • June 5, 2014 at 5:15 AM #21112
    Coronita
    Participant

    So wise piggs…. The ECB cut 2 key interest rates…

    Anyone care to speculate what the implications are in terms of investments?

    http://finance.yahoo.com/news/european-central-bank-cuts-rates-115006357.html

    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.

    ……

    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.

    June 5, 2014 at 5:34 AM #774750
    The-Shoveler
    Participant

    USA Dollar goes higher, Our interest rates will probably drop as well, Just my thoughts IMO anyway.

    Your results may vary.

    June 5, 2014 at 7:16 AM #774752
    carlsbadworker
    Participant

    Wow. -0.1% deposit rate!

    I predict strong mattress sales. LOL.

    June 5, 2014 at 7:38 AM #774753
    joec
    Participant

    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.

    June 5, 2014 at 8:18 AM #774754
    spdrun
    Participant

    Interestingly, Euro blipped down vs dollar, but is unchanged since yesterday right now.

    Here’s hoping for a stronger dollar with more Fed tapering.

    June 5, 2014 at 8:31 AM #774755
    Coronita
    Participant

    [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…..

    June 5, 2014 at 8:32 AM #774756
    Coronita
    Participant

    I never thought I’d see a day when there would be a negative interest rate…Lol….

    June 5, 2014 at 9:12 AM #774757
    an
    Participant

    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.

    June 5, 2014 at 9:23 AM #774759
    spdrun
    Participant

    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.

    June 5, 2014 at 9:26 AM #774762
    an
    Participant

    [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.

    June 5, 2014 at 9:37 AM #774764
    spdrun
    Participant

    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?

    June 5, 2014 at 9:42 AM #774765
    Coronita
    Participant

    Looks like shorts are getting their arses kicked again in the markets today….

    June 5, 2014 at 9:46 AM #774767
    an
    Participant

    [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.

    June 5, 2014 at 9:49 AM #774766
    spdrun
    Participant

    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.

    June 5, 2014 at 10:24 AM #774768
    livinincali
    Participant

    [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?

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