Interest rate cuts continue throughout Europe
Yesterday we had another episode of the “interest rates cutting” story. European Central Bank decreased the rates from 3.25 to 2.50, and Bank of England cut rates from 3.00 to 2.00. These are another radical cut rates in recent weeks.
The rates were cut also in Sweden and Denmark. Almost all countries in Europe struggle with the crisis and the lower expectations about the economic growth. Central banks are clearly engaged now not only in monetary policy, but in a way - in a fiscal policy as well. Of course inflation stopped to be a problem at the moment (for example in EU inflation went down from 4 to 2.1 percent in just couple of months). However, nobody can assess at this time, whether these rate cuts are big enough to stop the recession and at the same time - are they not giving us a risk of stagflation in the near future.
Tags: ecb, interest rates, monetary policy
Financial Crisis, Loans and Banking | admin | 
December 5, 2008 4:50 pm
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By Neil Pharazyn, December 9, 2008 @ 5:50 am
I decided that in the current financial situation what the world needs right now is a feel-good Xmas song.
I wrote this song [see the lyrics below] and made a YouTube video of it.
Could I ask if you would look at the video, and if you like it mention it in your blog.
Just below the song title there is a link to the video at YouTube. If that link doesn’t work you can see the video by visiting http://www.youtube.com and searching on thoroughly modern xmas . My video is listed with a small photo of the Wall St. street sign.
Regards and merry Xmas
Neil Pharazyn
manager@isc.co.nz
“A thoroughly modern Xmas: Santa vs. the financial meltdown ”
http://www.youtube.com/watch?v=6uorgH52_qE
Once upon a recent time, not so long ago,
in a world of make believe we all had lots of dough.
Then just last month the meltdown came and filled our hearts with fear,
But now that it is Xmas it’s time to raise some cheer.
Chorus: Sliding down the slippery slope, dashing through the snow.
Thrills and spills and mortgage bills, up again we go.
We’re not gonna worry, there’s more to life you know.
Credit squeeze can kiss my knees, up again we go.
Church bells ring out Xmas cheer.
Oh, be gone you Dow Jones bear.
Sub-prime debt was such a drag.
Here comes Santa with his bag.
Verse 2: We will have a Xmas just like days of old,
thinking of the poor folk out there in the cold.
The Lehmans and the Greenspans, friends from better days.
A dollar here, a dollar there, a parting of the ways.
Repeat chorus:
Church choirs sing good will to all,
Fannie Mae and Uncle Bill.
Recession is an ugly word,
chilling out is much preferred.
Verse 3: Firing up the furnace, drumsticks in our hand.
Take a break from mortgage woes, winter wonderland.
It’s good to have a low-debt home, with family by our side,
where we can tuck up nice and warm,
‘cos god it’s cold outside.
(C) Copyright 2008, words & music Neil Pharazyn, manager@isc.co.nz. Vocal: Neil Pharazyn. Producer: Jeremy Brick.
Images from istockphoto.com
© 2008 YouTube, LLC