Quote:
Originally Posted by thommy
nope it is not comparable.
the reason for the slower recovery of europe is that it was not financed by the local markets.
people did not get more opportunities for loans (in fact they got less)
buying obligations is not a big issue and it was even good that the FED did that even better than europe did it.
donīt forget - if you buy obligations you always buy a part of the company.
at the end there is not really a looser.
but if you use the PRIVATE sector to finance at the end the disaster by let them pay the bill later is not fair and not smart because it produces bankrupt citizens.
the difference between europe and USA is very easy.
USA pushed money in the market by giving the companies cash flow. they produced
and sold it to their own citizens. but as they did not have the money they got loans, more creditcards, longer payback times and so on.
in europe they also pushed money in the industry but they focused on EXPORT.
they did not slaughter the own citizens for it.
the result of that you can see now.
europeīs GDP is growing MUCH faster and much healthier and US GDP is slowing down because people canīt get more loans.
the next step comes now with the interest increase. that makes it even harder for a normal worker to pay back and that will have the effect that he will save money wherever he can. when he starts to save money the economy will decrease even more.
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Buying obligations don't give you a part of the company, you give them a loan for a %. And that % was too low cause the European Bank had so much money that it wants to spent. Now they even bought obligations from companys (first onlye from countries, so they could lent money cheap). And with companies you run the extra risk they dump worthless obligations, cause the European Bank buys them anyway. Does that sound familiar?
And ps; if you support the german gaspipeline to Russia, you are a Trump supporter
