/biz/ - Business & Finance

[Anonymous No.50539192]

>ECB hiked interest rates by 0,50%
>they are now 0,00%

[Anonymous No.50539409]

ecb are a bunch of incompetent tools

[Anonymous No.50539641]

>>50539409
oh they're much more than that
they're a bunch of incompetent delusional fools who think they know what they're doing

[Anonymous No.50539655]

put them at 5% i want real estate to dump
too much poorfags are allowed to buy real estate right now and this is not okay at all

[Anonymous No.50539677]

>>50539655
real estate won't dump in our life time

[Anonymous No.50539680]

>>50539192
B-bullish for the euro!

[Anonymous No.50539749]

>>50539655
>>50539680
They're only at 0% (which is clown world in and of itself) and there are already rumors of layoffs at my company (big manufacturing business around 2000 employees)
Shit's gonna get so fucked up eventually, they'll have to raise them even more. I can't imagine how bad it will be for us, let alone for PIGS southerners

[Anonymous No.50539769]

>>50539749
on the contrary, cw is that they're going back to QE in September

[Anonymous No.50539837]

>>50539769
yeah, back to QE with TPI
https://www.reuters.com/markets/europe/ecb-unveils-new-tpi-anti-fragmentation-instrument-2022-07-21/

they're gonna turn entire EU into greece/italy because they're too scared to tell those cucks to go bankrupt and fuck them
now we'll all be dragged down to their level eventually

[Anonymous No.50539910]

>>50539749
can't raise because PIGS will go bankrupt and the whole house of cards collapses

can't not raise because then we'll be wiping our asses with EUR banknotes since they will be worth less than toilet paper

either uncle sam bails out EU or this demonic cult finally meets its demise

[Anonymous No.50542435]

>>50539192
No they're at 0.5%

[Anonymous No.50542476]

>>50539192
what's the point of negative interest rates?
I'm a dumb man, help me out.
Why would you buy a bond that paid you negative interest?

[Anonymous No.50542519]

>>50542476
please help me

[Anonymous No.50542651]

>>50542435
nah, they're at 0% now
>>50542476
>>50542519
Yeah you get less money back, some investors, etc. buy it as a part of their portfolio to act as a "safe haven". It's supposed to be super duper safe investment that won't fall through even though you are at a slight loss. And surprisingly a lot of investors bought it.
In actuality these investors were mostly other EU government pension funds or various member states' related funds (because no one with skin in the game would buy that sick shit).
So this crap has now caused so many financial zombies and fake jobs to be created it's insane, gotta pump them gdp numbers up ayy and here we are now.
30-40% real inflation, sanction that act like a shotgun to your own foot. EU is one big fat mess, almost a paper tiger on the level of china

[Anonymous No.50542671]

>>50542651
It's not better to buy mutt bonds instead? Considering that they usualy don't pay negative interest rates and are actualy much safer than any european country

[Anonymous No.50542680]

>>50539192
does it mean that it was negative? is there any sense in a negative base rate?

[Anonymous No.50542693]

>>50542671
Like I said, these ECB bonds were mostly bought by other EU member states. It's such a fucking retarded ponzi it makes me sick how my countrymen just take it up the ass like this.
>>50542680
Yeah we had negative rates for 5-6 years now I think. It's great if you want to debtmax, just that ECB kikes forgot USD is the world reserve currency and not euro

[Anonymous No.50542703]

>>50542693
>Like I said, these ECB bonds were mostly bought by other EU member states. It's such a fucking retarded ponzi it makes me sick how my countrymen just take it up the ass like this.
How is Europe going to stay relevant without basically free money though?
I can't see any advantage of investing in Europe at all

[Anonymous No.50542723]

>>50542703
Well there is a fairly highly educated workforce compared to rest of the world. Only USA and some asia comes to mind. Other than that, not much reason. There is a few key industries related to precision/mechanical/chemical engineering, but nothing that can't be made in USA or maybe Japan/Korea

[Anonymous No.50542742]

>>50542476
>what's the point of negative interest rates?
some banks have these. They have sense because people can't have liquid assets in fiat in another way than that in their bank account.

[Anonymous No.50542745]

are there businesses that only exist because the loans are free? will this create signifigant unemployment?

[Anonymous No.50542753]

>>50542651
it sort of makes sense to pay a value security cost, not much different from insurance or hedging

[Anonymous No.50542761]

>>50542745
I wonder that too. I suppose that if the interest rates went positive even legitimately companies would be forced to cool down investments, and therefore fire some workers

[Anonymous No.50542771]

>>50542753
But EU is not really that secure, dollar is

[Anonymous No.50542786]

>>50542761
"legitimate companies*

[Anonymous No.50542798]

>>50542745
It's hard to give a hard mumber, but sometimes it feels to me like 50% of my countries' economy is fake shit reliant on free money and debtmaxing. I'm from one of the newer EU members. It's gonna get really really bad in 6-18 months imo
Much worse than 2008

[Anonymous No.50542801]

>>50539192
>They unironically thought we had the strength to attack Russia

We are far beyond incompetence. This is outright treason and you can't convince me otherwise.

[Anonymous No.50542840]

>>50542801
You had, but you didn't.
None of you really want to attack to Russia

[Anonymous No.50542846]

>>50542798
I hope so

[Anonymous No.50542852]

>>50542745
Aren't they known as zombie companies? These companies have basically been existing for years longer than they have any right to be because of these low interest rates. I've seen figures ranging from 10 to 15% of businesses are estimated to be zombie companies.

[Anonymous No.50542857]

Because in the end, artificially low interest rates are resource misallocation similar to what centralized socialist states do, except this is a decentralized misallocation.
You misdirect resources from productive businesses to unproductive ones. And the longer this goes on the worse the fallout will be. The ECB is doing this from 2008, the last big crisis. We never recovered properly. Except PIGS you now have countries like Belgium and France with massive debts. It's all gonna start cascading like dominoes. EU can't rely on reserve status or the army (what army lel) like the US.

[Anonymous No.50542893]

>>50542857
>except this is a decentralized misallocation
Interesting perspective, really.

[Anonymous No.50542973]

>>50542476
Some institutional investors are required by law to hold assets that are supposed to be ultra safe to hedge against various risks. One of these are bonds, so banks are basically strongarmed into buying these bonds by countries issuing these bonds. Yup, totally a total scam at all.

[Anonymous No.50542982]

>>50542973
I understand it, but is there a law in EU that the bonds need to be from EU?

[Anonymous No.50543003]

They're scared af because the EU economy is pretty much Germany+France, all other countries are poorfag gib takers

[Anonymous No.50543004]

https://www.euribor-rates.eu/en/current-euribor-rates/4/euribor-rate-12-months/

I decided on an amazing time to take out a mortgage, it seems.

[Anonymous No.50543024]

>>50543004
Incredible.
In my country the government subsidy mortgage for poor people with a 8% per years and it's considered extremely low by market standarts

You cannot suffer in EUrope

[Anonymous No.50543042]

>>50543024
I think there's some social housing for poor retards here as well. They shit up their commie blocks within a few years though.
I wish my mortgage was subsidized, all I get is "fuck you" and "pay your taxes".

[Anonymous No.50543060]

>>50542982
I an not an expert, so I don't actually know. However, I guess they need to have a) a certain risk rating and b) be denoted in Euro. Which narrows down their choices a lot.

[Anonymous No.50543062]

>>50543042
your mortage is pretty much subsidized already. It's insanely low

[Anonymous No.50543224]

>>50543004
Yeah, but the property is highly overvalued I reckon. Or not, depends what/where you bought

[Anonymous No.50543270]

>>50542476
>what's the point of negative interest rates?
giving free money to Italy to save them from bankruptcy

[Anonymous No.50544611]

>>50542476
Pension funds are forced by law to buy a certain % of government bonds.
Also central banks buy a shitload of bonds.

[Anonymous No.50544636]

>>50539192
Wait unit they do a full 100 basis points. The rate then will be 0%.

[Anonymous No.50544647]

>>50539749
just get your money into usd(t) before they introduce capital controls

[Anonymous No.50544756]

>>50542982
not really or, at least, not completely, but your own state bonds have lower tax rates and fees. also you may use them to borrow money from ECB (i wont explain how that works, but just know that it works that way), you cant do that with treasury bonds (the US ones)

[Anonymous No.50544939]

>>50544756
to be more clear about the "lower tax rates" let me do an example. basically, in europe, when you get returns from a financial instrument and realize those returns you have to pay a % on the returns (same as US), but you also get a fiscal detraction whenever you lose. when you get the face value of your bonds you realize a loss and get a detraction. the detraction is higher for your own state bonds. this should highlight why the whole "spread" thing is relevant in EU. PIGS banks have mostly PIGS bonds in their portfolios and are still incentivized to buy those, so effects of changes in interest rates in the eurozone arent symmetrical