This morning the European Central Bank announced that due to their stagnant economy, they are lowering their interest rates and starting their own version of quantitative easing. That’s like so 2008, Europe. Where the European Union does not have a debt aggregator (a ‘la Fannie Mae and Freddie Mac) like we do it will be a little more complicated to pull off, but I am more concerned about the implications than I am logistics.
Lower rates across the pond should mean that our rates get better too, but in the early going, Stocks are the beneficiaries of the prospect of lower rates abroad and upward pressure is being put on mortgage rates here at home.
