ECB Rate Cut Is Forced To Prevent Financial Collapse, But Not A Good Signal

The starts with the rate cuts despite inflation being greater than anticipated and forecasted higher in the future. The important things is that with rates at 4%, the European economy is doomed, it is as basic as that. Things will be okay until the remainder of the world understands the circumstance.

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Rate Cut Is Forced To Prevent Financial Collapse, But Not A Good Signal

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36 Comments

  1. For too long everyone thought that the central banks could solve anything with interest rates. Now here in europe we will see that it is time for unpopular reforms that need to hit who doesn’t work and so far has been the focus of unsustainable welfare systems. Pensioners in primis.

    1. So what will happen? They will lower rates and go back to new inflation cycle. Business as usual. So control via rates worked, no?

    2. ​@@n4870sno,since interest rates are a placebo when you have too many people that does not work and live off public expenditure.

    3. @@marcobonesi6794 You really gonna blame the welfare system totally? How you gonna get people to work? There are no jobs. People don’t have housing because there are no houses. If life was so simple, just go get a job! There are reasons for all of this. But if I say it, I get deleted.

  2. It has nothing to do with your video, but can I ask what you think of National Grid on the London market at the moment? Thanks and congratulations bye

  3. They won’t allow a recession. If they do people will turn against the politicians and they can no longer explain their money printing to support Ukraine.

    1. Even worse, they need to inflate to avoid losing this war because then EU is bankrupt as you can only roll your debts with a clear perspective for investors!

    2. LOL you think this mess is caused by Ukraine? It’s because Europeans are weak and will collapse even with a very low 4% interest rate.

    3. In what echo chamber does one have to live to think the ECB prints money to support Ukraine? Are you a Russian bot? 😉

  4. In the wake of 2008 we saw some consolidation of the insolvent into private large caps. Do you think it will be a similar trend if a euro crisis happens?

  5. I think the decline in purchasing power is already there. Few weeks ago I have been to Italy and I was literally shocked about the poverty I have seen. The country is still beautiful with all its historical buildings and this amazing culture, but you can see the lack of investment of the past 20-30 years everywhere.

  6. Thanks for this video. Love the final message. It makes me feel like in the Terminator movie. John Connor sending a radio message…if you are listening you are the resistance.

  7. Thanks for the analysis. Why do you Say the system Is made for low interest? Apart fron Italy situation

  8. I was shocked that the ECB lowered rates that soon. Do you think that Money Market Funds will be affected in terms of the interest they pay?

  9. Sadly the EU is consisting of too many countries that are not similar enough to have a stable monetary union. There’s a huge gap in northern European countries and southern ones, and when one country want to raise rates another wants to lower them. Thats exactly what happened in the euro crisis cirka 2012

  10. The ECB is obliged to pursue price stability as the main objective of its monetary policy (Article 127 TFEU). It is violating this legal basis if it now increases the key interest rate. Conclusion: If legality is not important for the ECB, we as citizens cannot have trust.

    1. But Cramer says the market will soar on rate cuts.

      He has a history of being wrong a lot though.

  11. Thanks Mate, the sad truth is that no one has a clue, we all react to what happens as it happens and try to analyse it but can’t predict an iota of what is going to unfold in the markets… content creators are like amplifiers, when times are good they affirm it and try to tell you why it’s good and that it’s looking bullish but then all of a sudden the market turns bearish and everyone affirms it again and try to analyse why… it’s so sad that many are so powerless and it’s not about guessing the market’s next move; it’s about playing it smart and steady during trading…managed to grow a nest egg of around 2.3Bitcoin to a decent 19Bitcoin in the space of a few months… I’m especially grateful to Sandy Barclays, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

    1. Exploring new investment opportunities demonstrates your proactive stance towards financial growth during these volatile times. Diversifying your portfolio can play a crucial role in effectiveIy mitigating risks..

    2. Over the years, I’ve been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Sandy insights. It’s akin to finding a diamond in a coal mine.

    3. I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience.

    4. Indeed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.

  12. Maybe video about euro and us dollar exchange rate if rates are high in USA but lower in EU?

  13. I don’t think predicting inflation would have gone up significantly as a result of the covid response would have been too difficult. Predicting how much and how fast might be impossible. However, handing people a paycheck to stay home and not work lowers productivity and raises the money supply. You would think that is an introduction to economics textbook formula for inflation.

  14. Thanks Sven, you have the best finance content on YouTube. It would seem the central banks have created a system that depends on high inflation and inflation has become the primary source of taxation. This is a tough landscape for growing a financial cushion.

  15. As I was thinking, they could not rise interest. I think their idea is to print money and keep rate as lower as they can, hoping to have a flat economy like Japan made in last 40 years.

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