February 19, 2018

Seattle Real Estate Mortgage Rates Today 8/16/11

Seattle Real Estate Mortgage Rates Today 8/16/11:  With the weakening economy in some Euro Zone countries, the proposal of creating Euro-Bond is appearing more attractive.  This would provide a mutual funding guarantee across all 17 Euro member countries.  As the Euro Bond’s backing of Euro Zone countries guaranteeing payment, Italy and Greece see it as the only viable way for them to receive reasonable funding rates.

With a very strong economy along with just as strong a work ethic, Germany has no interest in a Euro Bond.  Why?  Germany’s taxpayers are not going to carry the brunt of poor decisions and debt problems that were made by other countries.  If you go back to the introduction of the Euro over a decade ago, Germany was promised that a Euro Bond would never come to fruition.  However, many people believe that the only way for the Euro to survive is through a tighter fiscal union with the bond.

Should the Euro Bond be created, there might be a short-term lift of some of the uncertainty with the debt problems in the U.S. as some see the Euro Bond a long-term solution to the debt crisis.  Stocks would probably rally higher across the globe as safe haven trading of bonds would occur.  If there was an increase supply of bonds to the global markets, we could very much see lower prices.

Global investors may appreciate the creation of the Euro Bond.  This may be a viable alternative rather than US Treasuries.  Historically, treasuries have been a very safe haven for investors; however, the Euro Bond would be the treasuries competition and could put upward pressure on US rates.

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