Comments on: Is the European crisis good for America? http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Yaminmaher http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-15212 Wed, 26 May 2010 13:39:27 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-15212 It would be good for short term but could be bad for long term ! I dont think that europe can be again at the same place where it was before crisis.I have solid reasons , first Asia is becoming more powerful in technology day by day. China and India are emerging as big economies, they will not letting their people to buy things from western countries. first of blance is coming to its place and ofcours europ will feel it hard.no more German cars will be exported you know even hard hit war country Pakistan has its own vihicle manufacturer.only those country will servive to gain thier current position who will be more advance in technology , Greece is not a country on the top list as you know ! American war has locked the door of mostly muslim countries , that is an other reason of crises . If you want to get your world more peaceful any economical strong enough to provide better food , just Love this world , feel the pain of others , do the right job . and invest worldwide without racism , that will ofcours give you peace of mind and you will be strong enough Inshallah.

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By: kaitlyn http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-14990 Wed, 19 May 2010 18:08:51 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-14990 Even lower interest rates will not help us out of the crisis, nor will further declines in the housing market.

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By: dWj http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-14935 Tue, 18 May 2010 15:17:53 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-14935 The ten year bond, which tagged 4% in early April, has fallen below 3.5% with the latest outbreak of Greece. In principle, it’s long term rates that will affect investment, not short term rates. As you note, that would benefit GDP numbers in the next few quarters; as the first commenter notes, to the extent that that implies investment in capital goods that would not otherwise get investment, it may be malinvestment, and we may reap more whirlwind from that down the road. If there are “animal spirit” reasons for current underinvestment, though, more investment from lower long-term rates might be more of a good thing than a bad thing, even in the long term.

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By: dicktracy150 http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-14932 Tue, 18 May 2010 15:07:51 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-14932 I can’t figure out what Tim Duy was smoking when he wrote what he did. Obviously something that blanks out reality.

In addition to hurting exports which will start off a chain reaction of lost jobs, less consumer spending and lower company profits, consumer spending in EU will go down and hurt the bottom line of several companies. This in turn could lead to more job cuts. A weaker Euro will also decrease investment in the US by Europeans. In addition a weak euro will likely slow down the chinese economy which will in turn likely slow down the Australian economy.

The only positive is that with a cheaper Euro I can finally plan the european vacation i’ve been putting off for several years.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-14927 Tue, 18 May 2010 14:43:43 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-14927 Felix,

Don’t you think it possible that the Fed would have dropped its “for an extended period…” language from their last statement were it not for the crisis in the Euro zone.

I think they would like to remove that language to signal that their will be tightening near year end… but to do so with the Euro in freefall would have been akin to pouring gas on the already raging fire.

I do agree that while exports will get hurt low oil prices and low interest rates will be a net positive for the US.

As always love your stuff!

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By: AGreenInvestor http://blogs.reuters.com/felix-salmon/2010/05/18/is-the-european-crisis-good-for-america/comment-page-1/#comment-14924 Tue, 18 May 2010 14:31:34 +0000 http://blogs.reuters.com/felix-salmon/?p=3886#comment-14924 How can lower interest rates be good for America? By inflating another bubble?

The fundamental problem with Europe is the central monetary policy and separate fiscal policies .Until this problem is resolved we will see Europe lurching from one problem to another.The sovereign debt problem in the slow growing PIGS countries won’t go away easily . Austerity programs will lead to GDP decline which will make debt servicing problems even harder.On the other hand high deficits are leading to the same problem.
http://greenworldinvestor.com

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