Is it Time for European Banks to Shine? w/ Seamus Murphy
Real Vision: Finance & Investing
00:00
The Rise of Disposable Incomes in Europe
Wages are growing, but not as quickly as essential item inflation. And so therefore discretionary spending power was actually increasing. Since the GFC since we've had exceptionally loose policy, interest paid by the corporate sector in Germany has fallen. We entered into 2023 in a very different period or different era relative to prior cycles. You'll see a similar revolution where you see that the interest coverage ratio has gone from 10 times up to about 25 times during this cycle.
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