537
submitted 6 months ago by jeffw@lemmy.world to c/world@lemmy.world
you are viewing a single comment's thread
view the rest of the comments
[-] barsoap@lemm.ee 2 points 6 months ago

Please don't tell me you're blaming the Portuguese housing bubble on Germany. There's, like, laws and regulations you can enact to stop the fuckery.

[-] Aceticon@lemmy.world 2 points 6 months ago* (last edited 6 months ago)

Portugal is were it is because of a lot more reasons than the housing bubble, though I agree with you that the only element of Germany's blame for housing bubbles in the Eurozone in general (so, not just in Portugal) was way back in 2009/10 when they pushed ultra-low interest rates as the "solution" for the consequences of the 2008 Crash because it was what was better for the likes of Deutsche Bank and the Landesbanken which were overexposed to subprime and soverign debt.

(I actually have a recent comment were I list the IMHO various reasons for the housing bubbles in Europe one by one and that one is just one of them and most definitelly include in that list local problems like refusal to regulate AirBnBs and even the incentivising of foreign investment in the local realestate market)

Those "temporary" ultra-low interest rates lasted for over a decade and pushed up mortgages, both via the pathway of making the same monthly mortgage payment allow for a much larger mortgage (which together with other problems in the housing market innevitably pushed house prices up to the point were people were paying the same montly payments as before with much larger interest rates) and via the pathway of causing a "race up the yield ladder" which moved a lot of money from things like Treasuries (which even ended up with negative yields) into things like realestate and stocks, increasing Demand in those things and thus pushing prices up.

Further, and again to help the likes of Deutsche Bank, Germany also pushed for continued light-touch-regulation on Financial Institutions and unconditional rescue of affect banks with no requirement for reform (most notably no requirement to divest from and close the investment banking operations of retail banks), which in turn led to the progressive swamping of housed markets in places where most people were owner-occupiers with much more wealthy realestate investors, further pushing up prices.

This is without even going into the stuff which is not housing related and were Germany also put pressure to do all the wrong things for peripheral economies, such as the imposition of Austerity in countries like Greece and Portugal, something which even Christine Lagarde, former head of the IMF and president of the ECB later admitted was the wrong thing to do.

Let's not excuse the German politicians whose prime priority was the interest of Deutsche Bank, just as we shouldn't excuse the past and current incompetent moron politicians in places like my homeland.

this post was submitted on 23 May 2024
537 points (97.0% liked)

World News

39112 readers
710 users here now

A community for discussing events around the World

Rules:

Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News !news@lemmy.world

Politics !politics@lemmy.world

World Politics !globalpolitics@lemmy.world


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS