Is it game over for the Central Banks with their undermining practices printing unlimited amounts of money, laundering it, ruining savers, pensions funds, first-time home buyers and tenants.
At least for now.
As stock market traders vehemently pushing for action, there is little chance of any effective result from CB’s interference now. It is wide spread belief that stimuli are not enough as people locked up in their homes and transport in large areas is coming to a standstill.
Printing endless amounts of money and artificially low interest rates are obviously no solution for the unprecedented economic impact of the Corona virus. The COVID-19 event is one of unseen dimensions.
Bear in mind that the World economy never really recovered from the financial meltdown in 2008.
Thanks to the controversial practices of central banks, the terminal ill global economic system kept up and running like a Zombie. Recently, stock exchanges arrived at an all-time high.
So far, a fake recovery as savers with money in the bank, pension funds, first time buyers and tenants paid the price.
As a result of the low and negative interest policies, house prices particularly in Europe soar and the rent is nowadays for many ordinary people unaffordable. Poor people literary paying the price and suffering for the 1 % rich.
Those who suffer never got any help from politicians. They keep their mouth shut as it comes to homelessness and sky rocketing rent as a result of the undermining practices of central banks.
In England, many tenants can’t pay the rent any longer and are massively kicked out their homes, forced to sleep on the streets.
The rent of a 25 sq. ft. apartment in London is now at least 1500 pound. It’s not different in other European capitals.
This happens as houses are sold to investors and back on the market at a tremendous higher price.
Let’s be honest with an interest rate of near null percent or even negative, for many investors, there is not much alternative as to withdraw (most) money from the bank and invest in real estate.
Real estate is a safe haven with an often-good return on investment. Negative interest rates are inflating real estate prices all over Europe.
The positive effect from the central banks stimulus on the stock exchanges is fast paced wiping out. The recent stock market sell-off is considered as scary since there is no “financial” medicine.
Stocks dropped last week, not seen since the financial crisis in 2008, over fears that the Corona virus might ruin the World economy.
Many experts believe the Corona crisis is worse for the world economy than the financial turmoil in 2008.
What is happening is something of another dimension not easily to cure by low interest rates or other stimulating measures.
Most frightening is that it seems impossible to contain the virus spread.
It is similar to spread of the Black Death in the 14th century as cases emerged at the same time in different parts of the World not connected by modern transport.
This contributes to the theory that the Corona virus probably came from outer space.
COVID-19 is already a nightmare and nobody knows where it ends.