This is bound to put more downward pressure on the Euro ECB rate. as it must have an effect on exchange rates particularly if there is any delay in a further ECB cut in rates.
Might we see rates fall a further 1%?
It would certainly make serviceing debt more affordable for those whose incomes are being maintained.
It is only a matter of time before inflation is let loose particularly as the Americans are taking measures to keep rates low over the longer term.
They are cutting rates, and printing money.
I assume they believe the looming deflation will cancel out the inflationary effects of this move, and/ or are trying to reverse deflation.
I assume this will lead to a weakened currency. More dollars means they are less valuable.
What are the consequences of this?
A weakened dollar, i.e. €1 = $4 soon enough. IN order to cover the debts the Fed will have to print more dollars leading to inflation and stimulate the economy. The US is now effectively bankrupt and Obama will hammer the final nail in its coffin. The US will effectively try to print its way out of recession.Originally Posted by meriwether2
Its Zimbabwe style economics.
through the medium of inflation.
The Europeans will not tolerate inflation in the way that the Americans have signaled an acceptance of it with their long term position on interest rates.
my mortgage seems to be dropping like a stone.. got a really nice letter from Halifax yesterday... it's now below what we originally started paying including the discounted starter rate.. with more interest rate falls to come next year..
I know what a tracker mortgage is.. a great thing
I wonder could I go to an American bank this week and borrow enough money to pay off my mortgage... then pay off the US bank loan over 10 years, allowing the fall in the dollar against the Euro to ease the repayments ?
Global finance.. why can't we all be part of it
Good question. Let us know how you get on.
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Dollar carry trade!!!
I'm sure US banks are falling over themselves to mortgage or lend to fella from Tipperary.....its the new growth market.
2 hopes - and Bob is dead.
Damn.. I looked up an American bank mortgage calculator.. and they were looking for 8.5% interest .. what's the deal with that ?
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