ECB Ups The Ante

Bateman

http://uk.reuters.com/article/uk-ecb-policy-idUKKCN0WC0RU

Suppose we can expect to see the Euro reverse recent gains against USD

dasdog

I wouldn't bet on it. Already slipped to 108.25 and fully retraced surpassing the decision rate. Great entertainment, glad I'm not trading it.

For ever odd

Easy money for the banks, who want you to borrow money, whether you want it or not!!

"Fair enough", you say that's the way of things.... Until you start to look at the rates they are charging over the 0% ECB rate. Don't be fooled by the fancy wording, on total cost of finance for a 1/3 of the value of a new car for example. Even the auld credit union are charging 11% AER for car loans, but at least they are straight up about it.

0% interest rate will encourage financial institutions to take higher risks when lending to folk( smaller % loaned out, but higher rate of interest) . Banks will not get caught a second time, so logical deduction implys ordinary folk will be on the hook for a larger chunk when the next debt bubble bursts.


The regulators and politicians will be back slapping each other that the banks did not fall.

It started out with good intentions, but unfortunately this is how it will end up... Again!!!

dasdog

It's not going to fix the problems in Italy, Portugal, France, Spain but they had to do something. We can pretend for another while I suppose. Some interesting digests since.