In the financial crisis, is Europe becoming cheaper for American travelers?

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10-14-2008 @ 6:07AM

Joe said...

Those were the good days, buying electronics in the big Apple (at the time an iPod 5.5G was 165€), checking the exchange rate days before a trip and thinking of what I could bring back from the US that was wildly expensive in Europe, example the GAP. Now, I might be able to convince my mom to come back. Who went into shock after seeing the credit card bills from that trip.

A lot of europeans are in for a rude awakening but it won't be as surprising as what went on in the US. Spain has been drowning in an oversupply of real estate, UK real estate was so overpriced at one point I don't think anyone was really buying, and Ireland has had dramatic growth and dramatic growing pains.

The US has cut interest rates as close to the bone as they can go. The ECB has plenty of room to maneuver, even though it will cut rates atleast it won't be anywhere near 0 or 1%. Keep in mind the US is also trying to dump $700 billion dollars of make believe money onto the economy to spur growth. While this might help the local economy it's going to be a disaster for the dollar abroad.

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