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J-C Trichet: Extrerminating the loan borrowers

Old chap Jean Claude Trichet, 69, long time French civil servant and President of European Central Bank, increased the interest rates to tame inflation within the eurozone. Interest rates went up by a quarter percentage point to 1.25 %.  Holders of loans  – credit cards, homes and whatever loans – will have to start saving to pay back the higher interest rates. Then bank will apply the increased rates as soon as possible. Winners are only those who save money at the banks, short, medium or even long term.

As Trichet left the door open for further  for further interest rates increases, you are better advised to make  short term bank deposit contracts.

The increase of interests rates is the first after 2008 where the global economic crisis broke out. Major economists like Greece’s ‘old friend’ Nouriel Rubini, raised objection and warned Trichet of the negative impact of interest rates increase. No need to mention that Greece’s and Ireland’s debt clock will run even quicker now…

I have always been a supporter of the European Union but for some weird reason I “hamlet” myself and ascertain ” Something is rotten the state of Euro Zone…

Read also: (Bloomberg) Trichet Keeps Door Open to More Rate Moves to Tame Inflation , Analysts See More ECB Hikes Coming; Disagree On Timing, Pace

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