http://www.profitableinvestingtips.com/investing-trading/long-term-euro-zone-investment-outlook - Euro Zone Increases Its Lending Limit Again - Investors are concerned as the Euro Zone increases its lending limit again. The first concern is that there needs to be an increased lending limit. The second is that the extra €200 billion will not be enough to stop the Euro Zone from sliding back into financial chaos. A third concern is that as the Euro Zone increases its lending limit again the so called temporary increase will become permanent. What is the effect on profitable investing as the Euro Zone increases its lending limit again? A profitable investment timeline for European stocks will depend upon just how well the European debt rescue works and how well it sticks.
Didn’t They Just Rescue Greece?
So much of the drama of the last couple years focused on the bailout efforts for Greece. If Greece defaulted on its debts so would Spain and then Portugal and then Italy and then, maybe, France. That was the doomsday scenario. After painfully tedious discussions and negotiations the Greed bailout was completed. Along the way members of the Euro Zone agreed to strict austerity measures and the Euro Zone rescue fund was modified and set at €500 billion. The dispersal of funds to ailing banks and their subsequent investment in the bonds of various ailing nations helped drive down interest rates and all seemed well. Was this the time to be investing in Euro Zone stocks and scouting out other Euro Zone investment opportunities? But, now we hear that as the immediate rescue funds have been allotted and that more may be necessary. What does that mean for folks interested in investing in a European recovery as the Euro Zone increases its lending limit again?
How Much Is Germany Willing To Pay for Their European Market?
In discussions about coming up with funds to support banks and governments on the continent Germany is often referred to as the “paymaster” of the Euro Zone. With a GDP of over $3 Trillion, Germany has the fifth largest economy in the world and, by far, the largest in Europe. A distinct benefit to Germany of the European Union is that it erases trade barriers for German products across the length and breadth of Europe. However, Germany often has to pay for this trade advantage with support for its economically weaker neighbors. This is reminiscent of the United States dolling out foreign aid to nations across the globe in return for which these nations used to buy US farm products, military equipment, etc. Today the German electorate seems to balk more and more at the idea of supporting other nations in the Euro Zone. As the Euro Zone increases its lending limit again German Chancellor Merkel needs to worry about support in the Bundestag and from voters nationwide. It was certainly beneficial to Germany and the Euro Zone as a whole to stave off a Greek financial collapse.
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3. Investors are concerned as the Euro Zone increases
its lending limit again.
The first concern is that there needs to be an
increased lending limit.
www.ProfitableInvestingTips.com
4. The second is that the extra €200 billion will not be
enough to stop the Euro Zone from sliding back into
financial chaos.
A third concern is that as the Euro Zone increases its
lending limit again the so called temporary increase
will become permanent.
www.ProfitableInvestingTips.com
5. What is the effect on profitable investing as the Euro
Zone increases its lending limit again?
www.ProfitableInvestingTips.com
6. A profitable investment timeline for European
stocks will depend upon just how well the European
debt rescue works and how well it sticks.
www.ProfitableInvestingTips.com
7. Didn’t They Just Rescue Greece?
So much of the drama of the last couple years
focused on the bailout efforts for Greece.
www.ProfitableInvestingTips.com
8. If Greece defaulted on its debts so would Spain and
then Portugal and then Italy and then, maybe,
France.
www.ProfitableInvestingTips.com
9. That was the doomsday scenario.
www.ProfitableInvestingTips.com
10. After painfully tedious discussions and negotiations
the Greed bailout was completed.
www.ProfitableInvestingTips.com
11. Along the way members of the Euro Zone agreed to
strict austerity measures and the Euro Zone rescue
fund was modified and set at €500 billion.
www.ProfitableInvestingTips.com
12. The dispersal of funds to ailing banks and their
subsequent investment in the bonds of various
ailing nations helped drive down interest rates and
all seemed well.
www.ProfitableInvestingTips.com
13. Was this the time to be investing in Euro Zone stocks
and scouting out other Euro Zone investment
opportunities?
But, now we hear that as the immediate rescue
funds have been allotted and that more may be
necessary.
www.ProfitableInvestingTips.com
14. What does that mean for folks interested in
investing in a European recovery as the Euro Zone
increases its lending limit again?
www.ProfitableInvestingTips.com
15. How Much Is Germany Willing To Pay for Their
European Market?
www.ProfitableInvestingTips.com
16. In discussions about coming up with funds to
support banks and governments on the continent
Germany is often referred to as the “paymaster” of
the Euro Zone.
www.ProfitableInvestingTips.com
17. With a GDP of over $3 Trillion, Germany has the fifth
largest economy in the world and, by far, the largest
in Europe.
www.ProfitableInvestingTips.com
18. A distinct benefit to Germany of the European
Union is that it erases trade barriers for German
products across the length and breadth of Europe.
www.ProfitableInvestingTips.com
19. However, Germany often has to pay for this trade
advantage with support for its economically weaker
neighbors.
www.ProfitableInvestingTips.com
20. This is reminiscent of the United States dolling out
foreign aid to nations across the globe in return for
which these nations used to buy US farm products,
military equipment, etc.
www.ProfitableInvestingTips.com
21. Today the German electorate seems to balk more
and more at the idea of supporting other nations in
the Euro Zone.
www.ProfitableInvestingTips.com
22. As the Euro Zone increases its lending limit again
German Chancellor Merkel needs to worry about
support in the Bundestag and from voters
nationwide.
www.ProfitableInvestingTips.com
23. It was certainly beneficial to Germany and the Euro
Zone as a whole to stave off a Greek financial
collapse.
But, selling the idea of perpetually bailing out the
southern tier of Europe to German voters is another
matter.
www.ProfitableInvestingTips.com
24. Likewise, investors need to stay abreast of the
politics in Europe as well as the financial picture in
order to profitably invest in the Euro Zone.
www.ProfitableInvestingTips.com
25. For more insights and useful information regarding
investments and investing, visit
www.ProfitableInvestingTips.com.
