German Secretary Economics Warns Low Interest Rates Have Failed
The German Secretary General of the Economic Council of the CDU, Wolfgang Steiger, has highlighted the growing economic crisis in Europe. The negative interest rates of Draghi and the ECB have totally failed. He has pointed out that despite various EU stress tests for banks, time and time again they continue to fail. He has stressed himself that this does not strengthen the confidence in the rules or Europe. He has come out and bluntly states that ONLY reforms will work, not low interest rates.
original source: https://www.armstrongeconomics.com/international-news/europes-current-economy/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.