Saturday, Sep 15, 2007
Sarkozy and the ECB
Reuters: Sarkozy criticises ECB rate stance
PARIS (Reuters) - French president Nicolas Sarkozy on Saturday resumed his campaign for lower interest rates in Europe as he issued thinly veiled criticism to the way the European Central Bank had handled the credit crisis.
Posted by ash4781 @ 10:48 AM (321 views) Add Comment
3 Comments
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1. Alan said...
The Fed want lower IR to get them out of a hole. So does Sarkozy, for the Euro.
As our (stupid) CPI is 1.9% we could follow and cut rates too.
After that its just a race to the bottom. I know its not what folk want to hear, but the scenario is becoming more likely as time moves forward. Any views?
2. harold said...
Sarkozy is just a US pawn - a rate cut would not be good for EU inflation, but would help the dollar in the short term. Why does he want the ECB to cut rates?
3. mrmickey said...
Even Greenspan has come out and said the independance of the Fed is being threatened by political pressure, looks like the same will happen to the BOE and ECB (already Northern Rock was bailed under political pressure). A collapsing housing market is just not politically acceptable so expect interest rates to drop causing further bubbles and possible crashing currencies. This may buy the western economies a bit of time but this will make the eventual crash even worse. Once politicians have control of interest rates anything can happen but my bet is the total destruction of our unbacked currencies and hyperinflation.