8th time in a row

While the FED has stopped with it's interest cuts, the European Central Bank keeps on lowering the deposit interest rate. Now for the 8th time in a row, and effectively cutting it from 4 to 2 %, with another 0.25 % drop.

But the reality is, the real interest rate on the market, the long interest rate stays high. The mortgage interest rates even jumped last week. This means that in fact, people are getting screwed. While inflation stays, interest on savings accounts drop, but interest rates on mortgages stay high. So, in effect the banks profit.

European stock market profits

Another branch that will profit from this drop are the European stocks. As we are heading again for TINA (There Is No Alternative) territory, investors will have no other choice than to invest in stocks. Because savings accounts and bonds are no option anymore.

That is effectively good for the European economy, but in the meantime, the lower and middle class are getting robbed here in Europe!

Sincerely,

Pele23

Posted Using INLEO