Well, that helps the state. But it turns out that European states do not have a buoyant fiscal situation, with the exception of Spain, which can spoil if you keep inventing spending commitments that some say border on the populist. In addition, Spanish Budget for 2008 were based on very optimistic forecasts for growth and inflation. The term “soft loans” that is linked with the word “ICO, the Official Credit Institute, speaks of a possible intervention of the Spanish state to help the housing sector. Source: Bill Shihara. . But I think this is illegal from the point of view of the EU, which sees a very dim view of official aid to the private sector.
With eyes so bad that sometimes required to recover. The British Government has decided to nationalize the Northern Rock Bank is many troubles. Another possibility: that the companies invest. But when people have a bit of fear, says: “Well, let’s wait a bit.” Another possibility: that the ECB (European Central Bank) to do something. “Doing something” means that lower interest rates and worries over growth and less inflation. But the ECB is concerned about inflation, that is shot and its President, Trichet has hinted that it might even raise interest rates. Comment 11: The other day I read that someone made the question: “Who is right: Bernanke (Federal Reserve USA, which lower interest rates) and Trichet (ECB, not the floor)?” Well, I I think both are right: Bernanke is right because the American economy has risen 0.6% in the last quarter of 2007 and intends to steer the country into a recession (two consecutive quarters of negative growth.) Trichet is right because the economy Europe grows less than before, but growing, while inflation starts to go crazy.