Fed raises rates by 0.25% and turns more hawkish

cogito

Thrugelmir wrote: »

Well off the curve. The US finished with QE in 2014. The ECB isn't ceasing until December 2018. Don't underestimate the power of the $ on the money markets. Some other countries have already responded to the Fed hike to maintain exchange rate parity.

Just watch the money flooding out of the EU to the US. If the ECB responds by raising interest rates, Germany benefits (again) as an interest rate rise is just what it needs and the rest of the EU gets a kick in the proverbials (again).

Thrugelmir

cogito wrote: »

Germany benefits (again) as an interest rate rise is just what it needs and the rest of the EU gets a kick in the proverbials (again).

Germany has been the real beneficiary of the ECB QE policy. When it didn't actually require any stimulus. One size doesn't fit all.

cogito

Thrugelmir wrote: »

Germany has been the real beneficiary of the ECB QE policy. When it didn't actually require any stimulus. One size doesn't fit all.

Debatable. It depends how you view the Target 2 liabilities which will pass the €1trn mark very soon.

Thrugelmir

cogito wrote: »

Debatable. It depends how you view the Target 2 liabilities which will pass the €1trn mark very soon.

Germany has been buying back it's own Government debt. Enabling it to refinance at lower and lower rates of interest.

cogito

Thrugelmir wrote: »

Germany has been buying back it's own Government debt. Enabling it to refinance at lower and lower rates of interest.

Indeed. German bond yields are negative up to five years. The system is utterly screwed up. Who lends money to a government to get less back on maturity?