ECB member suggests 4 more rate hikes!
Insane or not?
Robert Holzmann, the president of the Austrian national bank, and member of the European Central Bank, talked today about the interest rate policy. It was quite astonishing, I must say.
He says that 4 more rate hikes of 0.50 basispoints is necessary to battle the inflation that is torturing Europe. That means that interest rates for home loans would go above 5 % and near 6 and 7 % for some people. And that will have serious consequences for a few markets.
Is it a blunt move? Or is it an insane move? I don't know, but I do think that it is too high. Around 4 % is more than enough to calm the inflation down, in my opinion.
Housing prices will crash
Housing price will crash all over Europe, with 25 % or more, because taking a loan for a house will be at least 25 % more expensive, because of the interest rates. This could lead to another credit crunch, like we had in 2008 in the United States. It is unlikely that it will be that bad, but it be ugly, very ugly. Especially because people in the European Union see owning a house as their retirement plan. For some this could become more of a nightmare instead of a dream.
And there is the bond market, it has already taken some hits the last year, this would completely take down some of the hedge funds that contain lots of bonds.
The future will tell, but it could become quite interesting, that is for sure!
Sincerely,
Pele23
Posted Using LeoFinance Beta
I highly recommend you to watch few Edward Dowd videos (former Blackrock exec manager) about what is going on. There are few other good ones out there. If they ban someone, that probably talks the truth. (If the masses would wake up, they would be in trouble, but they won't...) Basically corporate communism (and the govs are already in their pockets, all hordes lead by treasonous bastards, pretty much everywhere, especially in Europe), very simple and they don't hide it, openly talk about it. The ESG is a perfect example. For finding Dowd and his videos, I recommend yandex, as all other western search engine, big tech platforms shadow-banned him, simply because talking the truth. But they are not communists, fascists... :) :) :)
And it is not interesting at all (it's the dream of the psychopaths), as real inflation, hyper inflation did not start yet. I don't understand how can you say 'interesting', as they are just fcking away pretty much everybody's financial life, chance for freedom. This time, not picking a single target by their useful obeying slaves, hordes, but collectively from the very top, fcking away as many as they can with their collapsing, rotten system.
Well I use the word interesting as a sarcastic word. I will definitely check it out, thanks!
I don't really follow anybody, anywhere anymore, as they made me pretty clear years ago what is going on, didnt check his work in the last 2 years, just looked at it again, he has more focus on plandemic show than finance nowadays, but he still provides some opinion about finance world, and years back, he pretty much correctly predicted what and why happens, will happen. Not the only one, but regarding global CB actions, his name pop up first in my mind.
You are correct. Real estate is going to be in trouble. But also governments. The ECB wants to be seen acting tough. I have my doubts, though, as to how far it can go.
wow.. more drastic measures I guess..
Both interest rates and housing prices have been increased in my country since the pandemic. Buying a house is a dream now.
The rate hikes won't solve the problems at all. I have a feeling they are just going along with what the Fed did and they are panicking trying to get back faith in their currencies.
Posted Using LeoFinance Beta
Yay! 🤗
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