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World Recession Spreads Through Asia, ECB Still Holds Rates Steady

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  • #16
    Originally posted by Kidicious


    I think it's because most people believe that the ECB's policy is unorthodox and risky.
    Why is it unorthodox?

    Risky? Would you prefer the Fed's tactic of fighting the hangover of past bubbles by creating new ones?
    DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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    • #17
      WTF? the japanese are absolutely unbelievable!! They'we got reserves enough to maintain their deflation for another 10 years, thats just ridicilous. It's like an extremely rich guy lives with his stocks for decades after he's declared bankrupt
      Que l’Univers n’est qu’un défaut dans la pureté de Non-être.

      - Paul Valery

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      • #18
        Here's another graph



        The Eurozone's money supply is growing faster than in the US, its govt bonds have lower real interest rates and its corporate bonds even have lower rates in nominal terms.

        It seems to me monetary conditions are quite a bit looser in the Eurozone already. It's not because the American economy is so terribly ****ed up that Europe has to copy its monetary policy.
        DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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        • #19
          Originally posted by Kidicious
          Just because Germany is now part of a larger economy, why is it's growth insiginificant now?
          Not my point. Why is the rest of the Eurozone's growth insignificant?
          DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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          • #20
            I think most make that mistake.

            Germany also has too large a bully pulpit because of this focus. For instance, Joscha Fischer gets way too much play time for the votes that he and his party received.

            But that's for another thread...
            I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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            • #21
              Here's some jawboning between Schroeder and the ECB.

              http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1057562345094&p=1012571727092
              I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

              Comment

              • #22
                Originally posted by Colon
                Why is it unorthodox?
                Too conservative.
                Originally posted by Colon
                Risky? Would you prefer the Fed's tactic of fighting the hangover of past bubbles by creating new ones?
                Boy you and HO. There really are a lot of you aren't there. I don't think the danger of bubbles is nearly as bad as the danger of recession.
                I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                - Justice Brett Kavanaugh

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                • #23
                  Risky? Would you prefer the Fed's tactic of fighting the hangover of past bubbles by creating new ones?

                  Hey, wait! I thought you spent a post showing that the Fed's stance is not as easy as Europe's.

                  Party foul!
                  I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                  Comment

                  • #24
                    Originally posted by laurentius
                    WTF? the japanese are absolutely unbelievable!! They'we got reserves enough to maintain their deflation for another 10 years, thats just ridicilous. It's like an extremely rich guy lives with his stocks for decades after he's declared bankrupt
                    If they didn't stockpile those reserves their currency would be much stronger, and I think deflation would be worse.
                    I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                    - Justice Brett Kavanaugh

                    Comment

                    • #25
                      I'm not really worried about Germany. Consumer price deflation may or may not occur, but its economy isn't as isolated as Japan's is. Imports and exports make up a vastly larger portion of Germany's GDP, and its (Eurozone) trade partners act as a safety net. Right now, the low inflation rate only serves to improve the competiveness of German producers vis-a-vis its trade partners.
                      DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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                      • #26
                        Originally posted by Colon
                        Here's another graph



                        The Eurozone's money supply is growing faster than in the US, its govt bonds have lower real interest rates and its corporate bonds even have lower rates in nominal terms.

                        It seems to me monetary conditions are quite a bit looser in the Eurozone already. It's not because the American economy is so terribly ****ed up that Europe has to copy its monetary policy.
                        What does the growth in the money supply have to do with it? The Fed is lowering interest rates when the eocnomy is weak and the ECB is not. Money supply doesn't really matter. Interest rates matter. Nobody cares about money supply when they make economic decisions.
                        I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                        - Justice Brett Kavanaugh

                        Comment

                        • #27
                          Originally posted by Colon
                          Not my point. Why is the rest of the Eurozone's growth insignificant?
                          Europe as a whole is significant. European nations other than Germany and France are not significant.
                          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                          - Justice Brett Kavanaugh

                          Comment

                          • #28
                            Originally posted by Kidicious

                            Too conservative.
                            Based on what criteria?

                            Boy you and HO. There really are a lot of you aren't there. I don't think the danger of bubbles is nearly as bad as the danger of recession.
                            You just risk a bigger recession tomorrow.
                            DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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                            • #29
                              Originally posted by Colon
                              Based on what criteria?
                              Mainstream opinion
                              Originally posted by Colon
                              You just risk a bigger recession tomorrow.
                              I don't believe that. You really get drag when you are tight with the money supply during times of contraction.
                              I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                              - Justice Brett Kavanaugh

                              Comment

                              • #30
                                Originally posted by DanS
                                Risky? Would you prefer the Fed's tactic of fighting the hangover of past bubbles by creating new ones?

                                Hey, wait! I thought you spent a post showing that the Fed's stance is not as easy as Europe's.

                                Party foul!
                                No, I spent a post showing monetary conditions are looser in the eurozone.
                                DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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