Kenneth Alvarez98 said:I don't think it's quite that complicated. Basically, interest rates dropped, so they just started racking up debt (look at Greece). But instead of investing in growth or the economy, they spent it on importing cars or hosting the Olympics, and now those debts are finally coming due. It only took one percent of the system hitting a wall to trigger a total chain reaction.
I don't see the US changing anything special by joining the Eurozone. Even before this, the US has kept its currency pretty steady without much fluctuation. So, I don't really see a huge difference.
That’s honestly my question too. All I know for sure is that interest rates will drop, but other than that, nothing 🤷 .
Besides, if they actually knew what the consequences of adopting the Euro would be, they could adjust their policies to meet expectations so they wouldn't end up like Greece.
I’m pretty skeptical about that, even then.
Generally speaking, interest rates drop when economic risk goes down.
Right now, I have no clue how much that risk is actually going to decrease. I used to understand the math behind risk assessment back in the day, but one of the huge factors is political stability. In our case, the only thing feeling relatively stable—and even that's just creeping up slightly—is the fact that we joined the EU. Meanwhile, almost every other indicator, especially the actual economy, is looking worse and worse, and the country is basically just idling. So, I can't exactly say the risk is dropping.
Look, if the entire global economy is tanking, the cost of money stays high. But if things are looking good everywhere else, then the price of money generally goes down.
Take us back a few years, for example. We were borrowing money at massive interest rates back when the economy was actually doing way better than it is today. Now, even though the economy is struggling, interest rates are lower simply because the world finally moved past that massive global financial crisis.