Quote:
Originally Posted by Bjorn_Tasty1
Europe isn't different, they do the same. The European bank bought for billions obligations the last years and will keep doing that till the end of this year, or maybe longer. Nothing is fixed with international trade, the debts to make that international trade possible are still there (and growing).
I also read a lot of professionals expect a new even bigger crisis. Cause the debts are higher than ever and it is the end of the 4 - 8 year cycle of ups- and -downs.
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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.