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RE: German Secretary Economics Warns Low Interest Rates Have Failed
Thanks good post.
After these comments everybody should be getting ready for increase in interest rates(it is inevitable) Lets see if it brings housing market crash.
Yeah I agree that if they raise rates then it has a chance of crashing the housing markets. I just cant see them meaningfully raising rates to say 4 or 5% (base rate) because it would increase the interest on the governments debts around the world. For instance, if America raised rates to 5% they would be paying something like one trillion per year in interest on their debts. They only take in about three trillion. The uk would be in a similar position as would Europe. Very interesting times and you are correct, everyone should be getting ready should they start increasing them.