Europe And European banks-when are they taking the US down ?

[syswizard]

CNBC's Carter Werth had a great chart showing the relative interest rates of all of the major European countries and compared it to the US rates....I think he was showing the 5 year note.
My question is when will the USA finally be affected by Europe, especially if the latest QE attempts fail ?
Could another October crash be coming ?

 

[TradeCat]

The US economy is far FAR stronger than Europe. Problem is that liberal European socialists are more concerned with how to let even more haters-of-the-West into their nations, than trying to improve the lives of their native people. Why would their banks get any stronger?
EU is a joke.
Next....

 

[Martinghoul]

CNBC's Carter Werth had a great chart showing the relative interest rates of all of the major European countries and compared it to the US rates....I think he was showing the 5 year note.
My question is when will the USA finally be affected by Europe, especially if the latest QE attempts fail ?
Could another October crash be coming ?

USA is affected by Europe. Why do you think US rates are so low?

 

[ironchef]

USA is affected by Europe. Why do you think US rates are so low?

I did notice in the past that the US rates were usually (almost always) much higher than those of Europe and Japan, just don't understand why. Can you explain?

Thanks.

 

[eurusdzn]

Can anything be allowed to fail anymore? Why would The German Bank be allowed to fail?
Insolvency can be delayed by an unlimited supply of credit and capital from atypical sources.
That's how I see it.

 

[Martinghoul]

I did notice in the past that the US rates were usually (almost always) much higher than those of Europe and Japan, just don't understand why. Can you explain?

Thanks.

In general, this is a very rich subject. One of the easiest explanations is based on what's known as the "golden rule". Specifically, over the long term real rates should be equal to steady state growth. Steady state growth, in theory, is a sum of population and productivity growth. Both are perceived to be higher in the US than in Europe and Japan. Obviously, this doesn't even involve inflation.

 

[syswizard]

USA is affected by Europe. Why do you think US rates are so low?

Yes, I hear you...but I don't see the real effect...yet. We are at 1.5% GDP growth....if I see zero or negative growth, then I'll believe there is a cause and effect relationship here.

 

[zdreg]

The US economy is far FAR stronger than Europe. Problem is that liberal European socialists are more concerned with how to let even more haters-of-the-West into their nations, than trying to improve the lives of their native people. Why would their banks get any stronger?
EU is a joke.
Next....

with a seemingly permanent underclass in the US, with a crumbling infrastructure, with an educational system which produces semi-literates and with public pension systems bankrupting the States the US is not very far beyond a declining Europe.

 

[syswizard]

Excellent points ZD !! And let's add to the mix: still no TAX reform, no TORT reform, no FISCAL reform on the horizon.
Taxes and lawsuits are stifling any potential growth in the US economy.

 

[felixbocharov]

Now everything can happen, Europe slowly but surely is going it to a recession.