Below 0% Interest For Germany... QE Anticipated For Europe!

[Economy 52,951]

http://globaleconomica--lysis.blogspot.ca/2014/08/german-two-year-bonds-have-negative.html?m=1 http://mobile.bloomberg.com/news/2014-08-26/treasury-two-year-notes-yield-most-versus-germany-since-2007.html

The European Central Bank is expected to increase monetary stimulus to try and end the seemingly endless economic stagnation. Since interest rates are almost at 0%...

The next step would be to start printing money with Quantitative Easing (QE) and buying bonds and other securities like the the US and Japan have done.

Germany which is considered to be one of the most stable Countries in Europe is a safe Heaven and investors pour money into Germanys bonds

Speculation that QE will bring bond prices higher has investors buying more German bonds even tho theres virtually no yield. Interest rates have actually gone negative for 2 year German Bonds meaning that essentially Germany is getting payed for borrowing money!

[bionic 50,111]

slay a bit germany

[HANZ 4,380]

THE SLAYAGE

[Pop 4,541]

I'm still scared of Germany because I think if they get too much power they will start WWIII. 

[hmm 979]

I'm still scared of Germany because I think if they get too much power they will start WWIII. 

 

Oh please, cus that's not at all a narrow minded statement 

[MonsterOfSpain 8,331]

How can that be possible?

[lodylody 1,790]

Oh please, cus that's not at all a narrow minded statement 

[Economy 52,951]

How can that be possible?

the bond market is well, a market. bonds have prices too depending on demand and then theres also the rates that fluctuate with it

 

A lot of scared people that dont trust their banks in their Country etc wanna put the money safe in Germany cause the odds of them ever defaulting on debt payments are really low. That makes bond prices in Germany high, and their interest rates low

 

Now that the Central Bank of Europe may start QE, there is speculation the bond market will become more tight and expensive with The Central Bank printing money and buying bonds to try and force rates lower for cheap credit across Europe

 

The reason investors may be willing to accept negative rates may be pure speculation that the bond prices will go even higher and they will still make a profit. This will suck for whoever gets the hot potato when the bond market finally cools tho

[MonsterOfSpain 8,331]

the bond market is well, a market. bonds have prices too depending on demand and then theres also the rates that fluctuate with it

 

A lot of scared people that dont trust their banks in their Country etc wanna put the money safe in Germany cause the odds of them ever defaulting on debt payments are really low. That makes bond prices in Germany high, and their interest rates low

 

Now that the Central Bank of Europe may start QE, there is speculation the bond market will become more tight and expensive with The Central Bank printing money and buying bonds to try and force rates lower for cheap credit across Europe

 

The reason investors may be willing to accept negative rates may be pure speculation that the bond prices will go even higher and they will still make a profit. This will suck for whoever gets the hot potato when the bond market finally cools tho

 

I don't understand much about economy, but if people is willing to pay Germany for keeping their money safe then slé I guess.

 

Spain got better during the past year in this sense too, it's at 2,21% now after being at 6 or 7% just one year ago.

[Economy 52,951]

I don't understand much about economy, but if people is willing to pay Germany for keeping their money safe then slé I guess.

 

Spain got better during the past year in this sense too, it's at 2,21% now after being at 6 or 7% just one year ago.

not exactly... they are willing to accept lower interest to keep their money safe rather than the hiogher interest in their unstable Countries such as Greece

 

But the more investors buy bonds, the more their price rises, and the lower the yield

 

But QE will likely lower interest rates (yields) for Countries such as Greece, Spain Portugal etc and they wont be attractive at all because they are risky and they will pay investors lower rates

 

So there is speculation some more money from investors (as well as money from QE) will be poured into German bonds and their prices will rise further

 

They are loosing money with negative yields, but many speculate they will gain money over-all as their prices rise in the over-heated bond market!

I'm still scared of Germany because I think if they get too much power they will start WWIII. 

because their interest rates fell like half a percent?

[HANZ 4,380]

I'm still scared of Germany because I think if they get too much power they will start WWIII. 

mess