Hacker News Reader

Because it never has made an full recovering. 2016 fed only started on making lower balance sheet but never making much progress: https://www.federalreserve.gov/monetarypolicy/bst_recenttren...

Interest rate are similar: https://fred.stlouisfed.org/series/FEDFUNDS

Europe even worse than these above. We leave us without tools for economic troubles when we are declining to raise interest rate and sell assets on business cycle peak.

View on HN

How does Europe have it worse when the debt to GDP ratio of the combined Eurozone federal governments for example is lower than the US fed? Further, most eurozone countries, like Italy don’t have sub national debt(its regions and cities can’t legally have debt), where as states like California are massively in debt, but that sub national debt in the US is never calculated in debt ratios. Further, the last time I checked, debt held by private households in the US is also much higher on average.

In time of an economic crises, Municipality have a much simpler making of bankruptcy than national government. Same on household. But I call Eurozone worse because ECB have less room on moving interest rate so fewer tools. My above point more was that both are in badly because of never recovering after the previous issues.

Reply on news.ycombinator.com