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Negative rates not the end of moves for the ECB

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Comments (32)
  • Deja Vu
    , contributor
    Comments (1585) | Send Message
     
    Crank up the printing presses for the tottering old socialistic regime of Europe. So long as someone will take the Euros and send them oil and manufactured goods, why not keep printing them...why should anyone work so long as guvment can print euros and give it to them....The inflation unleashed by this will be interesting to watch...
    5 Jun 2014, 08:55 AM Reply Like
  • june1234
    , contributor
    Comments (3265) | Send Message
     
    They're just following our lead.
    5 Jun 2014, 09:06 AM Reply Like
  • Debutant
    , contributor
    Comments (2582) | Send Message
     
    [Variations on Deja Vu's comment]

     

    Crank up the printing presses for the tottering old socialistic regime of Europe [capitalistic regime of the USA]. So long as someone will take the Euros and send them oil and manufactured goods [US Dollars and send them Chinese goods], why not keep printing them...why should anyone work so long as guvment can print euros [USD and food stamps] and give it to them....The inflation unleashed by this will be interesting to watch...

     

    Conclusion: Economic / financial problems are worldwide. Measures are limited and similar.
    5 Jun 2014, 09:14 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1585) | Send Message
     
    Problems are limited to welfare regimes, measures don't eeem to be limited at all, consequences will be unlimited and similar.
    5 Jun 2014, 10:34 AM Reply Like
  • Debutant
    , contributor
    Comments (2582) | Send Message
     
    I'm looking forward to the day when other continents/states (India and US??) will show Europe the way.
    5 Jun 2014, 10:43 AM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    Technology and globalization are deflationary . What's your solution beyond poverty?
    5 Jun 2014, 09:12 AM Reply Like
  • Gary Jakacky
    , contributor
    Comments (2757) | Send Message
     
    Wrong and wrong. You are confusing LOWER costs in one sector with lower prices OVERALL. When technology lowers the cost of one item (say, a PC) it frees up funds to spend on other items (Coffee, in my case). The only continent yet to embrace tech and globalization (Africa) is an assortment or pathetic basket cases.
    5 Jun 2014, 09:28 AM Reply Like
  • BudH
    , contributor
    Comments (419) | Send Message
     
    NOt wrong and wrong. Africa has very different problems from technology and globalization. Rampant corruption in government being one.
    5 Jun 2014, 10:17 AM Reply Like
  • Ron Reed
    , contributor
    Comments (319) | Send Message
     
    No, I agree with Gary's statement on its face. Often people confuse the shift in money and look at it in too narrow a focus. He does not separate out the issues most of Africa faces, which Bud points out. Both are correct in my est.

     

    The cure for such rampant sociopolitical issues is so multifaceted that I cannot even begin to correct them. Much of MENA faces the same issues, corruption supported by citizens kept unaware to hold power in place. Just had this conversation this morning with a now US Cit. who's parents came over from N.A. for a visit.
    5 Jun 2014, 04:38 PM Reply Like
  • Interesting Times
    , contributor
    Comments (170) | Send Message
     
    The metals are the long term play. Games with your currency come back to haunt you eventually. Might look like a smart short term move. But long term ?

     

    Worthless money is what we will have !!
    5 Jun 2014, 09:24 AM Reply Like
  • machiavelli
    , contributor
    Comments (683) | Send Message
     
    Getting close to 10,000 comments about gold now, eh IT? Worthless is a word I'm thinking of too but in some other regard.
    5 Jun 2014, 08:45 PM Reply Like
  • Great Swami
    , contributor
    Comments (856) | Send Message
     
    Going negative will force idle money on corporate balance sheets to be deployed. A good move as to that issue imo! but it could also ignite another round of really dumb credit expansion from the banks themselves. We shall see.
    As an aside, Janet Yellen mentioned instituting negative rates as a possible Fed move about a year ago, so it could happen here too!,
    5 Jun 2014, 09:37 AM Reply Like
  • financeminister
    , contributor
    Comments (1028) | Send Message
     
    when that fails, why not go for the idle money in savings accounts.
    5 Jun 2014, 11:31 AM Reply Like
  • mobyss
    , contributor
    Comments (2236) | Send Message
     
    You're saying that the Fed will force rates on 10-year Treasuries under 0%?

     

    Wouldn't that be the best place for corporations to park cash is they are being taxed to keep it in demand or MM accounts?
    5 Jun 2014, 03:15 PM Reply Like
  • jstratt
    , contributor
    Comments (3104) | Send Message
     
    I'm not predicting but!

     

    Investors should consider what would happen if deflation spread across the world.

     

    Some points

     

    1) extraordinary measures to avoid deflation in 7th year
    2) historically deflation has not been avoided after depressionary event
    3) with current focus on returns a stampede would ensue

     

    I really dont have that as my base case for what will happen. It is just that I cant dismiss the possibility.
    5 Jun 2014, 09:39 AM Reply Like
  • SharkDude
    , contributor
    Comments (735) | Send Message
     
    there is only wage deflation. hard assests, services, and food/shelter prices are not going down.
    5 Jun 2014, 11:08 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4359) | Send Message
     
    It's also not true that deflation is global. What happens is that artificially low interest rates encourage a carry trade to develop that transfers inflation to economies where returns are better. Many emerging economies have continued to experience inflation even while the US, Europe, and Japan were fighting deflation.
    5 Jun 2014, 02:15 PM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    Gary, somehow that hasn't been the result, except for the very talented or fortunate . Hope you are correct for my kid's sake.
    5 Jun 2014, 10:06 AM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    To be wrong and wrong is a rare accomplishment, say rather that I am too simplistic when dealing with such a weighty subject.
    5 Jun 2014, 10:20 AM Reply Like
  • sekiryutei
    , contributor
    Comments (9) | Send Message
     
    I'm still currently confused in here. Why that the eur rally even with the announcement of the LTRO and rate cut? Anyone can explain it to me?
    5 Jun 2014, 11:00 AM Reply Like
  • SharkDude
    , contributor
    Comments (735) | Send Message
     
    because this is all cosmetic. very little of it will have an effect. and in the end if businesses do not want to borrow banks can force them. also, look at the movements in rates. 25bps and 10bps. not enough to really move the needle for banks. LTRO balance have been shrinking all year. It is dirt cheap already and the banks do not want it. Banks do not want to be more dependent on ECB they want to be less.
    5 Jun 2014, 11:07 AM Reply Like
  • ghaukness0929
    , contributor
    Comments (171) | Send Message
     
    The EURUSD rallied because it hit smack on the 200 day EMA. People on here think the technicals are BS but if you are trading Forex you will get burned quick if you ignore them.

     

    It should tell you some thing if that is the most selling that the EUR could take after this announcement. the market had really already priced this in the last two weeks.

     

    Its now a game of playing the policy makers toolboxes rather than playing fundamentals.
    5 Jun 2014, 01:06 PM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    @0929: I would have said recent support was in 1.35 based on February Lows. Also Pivot Point S3 was at 1.3525 (for today) so overshoot to round numbers is a decent bet in FX (but I think we just missed it). Hey but anyway I'm clearly agreeing Technicals are key in FX -- every trader can pick their own technicals to fit their own trading style. EURUSD looks like it will run higher for a while after extended move from 1.40 to 1.35.
    5 Jun 2014, 01:41 PM Reply Like
  • SharkDude
    , contributor
    Comments (735) | Send Message
     
    Central banks are a joke. They are not supposed to print money forever. And in the case of Europe they want banks to lend to businesses. Well, why expand or create a new business when you will just be taxed to high heaven. Taxes are the issue not loans.
    5 Jun 2014, 11:03 AM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    Profits and therefore growth are also part of the equation?
    5 Jun 2014, 11:22 AM Reply Like
  • anwi
    , contributor
    Comments (11) | Send Message
     
    So many sick comments. The authors seem not to know anything about the working of the monetary system.
    5 Jun 2014, 11:29 AM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    Talk isn't enough anymore for Draghi. ECB needs to actually deliver more QE. But if they do it can't be good. If the ECB does it then I think that all these CBs are insane!!!
    5 Jun 2014, 12:46 PM Reply Like
  • longway
    , contributor
    Comments (7) | Send Message
     
    The real problem in most countries is excessive government salaries and benefits at senior levels. Countries running deficits must cut excessive salaries. Instead they print money and increase debt. All EU MPs and senior staff should start the process by voluntarily offering 50% cut of salaries above 100,000 euros. Each country would be invited to follow suit. Thank you fir reading my comment. Anthony
    5 Jun 2014, 05:19 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3378) | Send Message
     
    The global ponzi continues... to infinity & beyond

     

    Whats amazing is how many people are CONVINCED these actions will lead to utopia

     

    Japan is 25 years in & how they doing?
    5 Jun 2014, 09:00 PM Reply Like
  • MisterJ
    , contributor
    Comments (912) | Send Message
     
    Yawn. The most hated bull market of all time continues. More hate nonsensical comments here. What a deja vue.
    5 Jun 2014, 11:09 PM Reply Like
  • diadochi
    , contributor
    Comments (267) | Send Message
     
    Yes, long VGK in anticipation of this.
    6 Jun 2014, 12:09 AM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    Retired broker, enjoy managing and advising family's money.
    6 Jun 2014, 11:36 AM Reply Like
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