From BBC 26 Jun 2011 -
“The Bank for International Settlements (BIS) has warned that low interest rates across the globe are a threat to world financial stability.
Central banks have cut interest rates in an attempt to boost growth after the 2008 financial crisis.
“The prolonged period of very low interest rates entails the risk of creating serious financial distortions, misallocations of resources and delay in the necessary deleveraging in those advanced countries most affected by the crisis,” the bank said in its annual report.
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Interest rate increases are not necessary for the Vancouver RE price bubble to implode, but if they were to occur they would speed the process. – vreaa
The definition of insanity is doing the same thing over and over and expecting a different result…
Here we are doing the same thing at a global level the US was doing from 2002 to 2007… Low interest rates, loose fiscal policy, “priming” the pumps… and we think we’ll get a better result this time.
but.. low interest rates help win elections! it’s really actually a good thing..
Yeah, that’s what the Greeks said after they became part of the Eurozone in 1999…
LOL
it’s all just a giant global zombified, junkie debt pyramid
why should germans work so greeks can retire? fuck em
Yeah those Germans with those low interest rates. And no housing bubble. And GDP growth.
And the ECB had the balls to raise rates on them.
i think somewhere in my convoluted sarcasm we’ve taken me seriously at one point.
i just mean that greece is one of those countries whose politicians are always seeking short term poltiical gain without pain, and of course, we all know there is no free lunch. now all of europe is bailing out the irresponsible while the somewhat prudent manufacturing nations – ie: germany – just like all everyone throughout the last 4 years around the world – are being thrown under the bus.
happy thoughts
I got you Derp but it’s not the Greeks looking for an easy way out, it’s the core European banks and their respective countries’ politicians who are looking sillier every passing day perpetuating an obvious charade.
I don’t know who’s to blame, the Greeks who are acting all Greek like, given their history of chronic default, or the banks and governments who are lending to them thinking they can change a 5000 year old culture in a handful of years of austerity. I say door #2.
Greece is a shithole because Greeks are assholes, according to Michael Lewis.
“I left two dozen interviews saying to myself, “What great people!” They do not share the sentiment about one another: the hardest thing to do in Greece is to get one Greek to compliment another behind his back. No success of any kind is regarded without suspicion. Everyone is pretty sure everyone is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families.”
http://www.vanityfair.com/business/features/2010/10/greeks-bearing-bonds-201010?printable=true
Excellent commentary from Stratfor on the current situation in Europe http://www.stratfor.com/weekly/20110627-divided-states-europe
You know how we have been wondering about a “black swan” event?
Greece is a possibiity and, I hate to say this, but I’m getting a wee bit worried about the US defaulting on debt in August.