We had an opinion piece on mortgages published in the Irish Examiner yesterday, you can see it by clicking on the image above or here.
The Euro rose against the dollar as the Fed introduced quantitative easing, this will be furthered by the new TARP programme due to be released later today, Bank of England are also engaging in quantitative easing along with a near zero interest rate policy – one matched by both the USA and Japan.
So what will be the outcome for Europe? Essentially we will be forced to follow suit, rates will have to drop further and we will need to pursue in quantitative easing – via bond/paper purchases or otherwise. Why? Simply put, we cannot stand as an island in the global economy, we can’t stand as a continent when every other major economy is going to zero and going through what amounts to devaluation with increased money supply.
If the Euro rises too far against the Dollar or Sterling it will make exporting difficult (we’ll leave Ireland’s plight with Sterling zone exporters out of this …