Buchsbaum
2023-08-28 09:03:01
- #1
According to internal bank sources, lending for construction projects has collapsed by 95 percent. It is therefore not surprising that entire factories of manufacturers of bricks and Poroton stones are being shut down.
At some point, however, we will reach a point where it is questionable whether these manufacturers will survive. It is doubtful that construction activity will quickly and fully pick up again.
The ECB's long-standing zero interest rate policy will prove to be a serious mistake. The bubble of cheap money is now bursting with a big bang. Completely predictable, by the way. We will now experience a very short deflationary phase with falling asset prices. If the ECB then succumbs once again to the political pressure for interest rate cuts, inflation will no longer be containable and we will then witness the end of the euro. Short and painless.
By the way, it feels quite good when everything gets a bit grounded again.
At some point, however, we will reach a point where it is questionable whether these manufacturers will survive. It is doubtful that construction activity will quickly and fully pick up again.
The ECB's long-standing zero interest rate policy will prove to be a serious mistake. The bubble of cheap money is now bursting with a big bang. Completely predictable, by the way. We will now experience a very short deflationary phase with falling asset prices. If the ECB then succumbs once again to the political pressure for interest rate cuts, inflation will no longer be containable and we will then witness the end of the euro. Short and painless.
By the way, it feels quite good when everything gets a bit grounded again.