Twitter is on fire with the news that the European Central Bank cut it’s key interest rate a quarter-point to 1 percent. The action is certainly one that signals clear panic, as the European Union continues to battle against the impact of the credit crunch and the International Division of Labor, which has wrecked Greek’s economy and forced members of the EU with money to help those without it, and to install major spending cuts, harming the main middle class worker.
Market Pulse put it this way:
The widely expected rate cut, back to a record low of 1 percent, came hours before a high-stakes EU summit which will aim to agree on a plan to defuse the crisis, with France and Germany pushing for rule changes to stricter budget discipline in the bloc.
On Twitter, the keyword European Central Bank was as high as number three, and the tweets were mostly expressing the basic news…
And nothing expressing shock or outrage. It’s a needed fix. The real need, however, is for the EU to get off the austerity kick, print money, and build its economy. Damn the inflation fears, full speed ahead, and toward some kind of new credit to get us out of this jam.
The problem is, folks, we built all of this stuff – buildings, planes, cities – on credit, and now we have to maintain it with little credit. In other words, collapse our World. Not a good state to be in.
It’s so bad that the International Air Transport Association (IATA) said airlines could lose up to $8 billion in 2012 from the Europe Debt Crisis. Tony Tyler, IATA’s Director General and CEO said “The biggest risk facing airline profitability over the next year is the economic turmoil that would result from a failure of governments to resolve the Eurozone sovereign debt crisis. Such an outcome could lead to losses of over $8 billion – the largest since the 2008 financial crisis.”
All I can say is stay tuned. Austerity will not work one bit.