How will the EU be affected after the takeover of Credit Suisse by UBS?

In their statements about how this situation may affect the EU in the future, American economists warned that results similar to the 2008 financial crisis could be encountered. According to American economists, the current crisis stems from rapidly rising interest rates and the loose monetary policies of Central banks, rather than the bankruptcy of several banks one after another. As a result of this situation, just like in Silicon Valley Bank, the value of bank reserves decreases with the rising interest rates of banks.

Explaining the reasons for the bankruptcies, economists said, "The net outflows from the banks are invested in government bonds. Of course, if investors can only earn 0.2 percent in their bank savings accounts, they will convert it to government bonds where they can earn 4 percent. That is, they withdraw their deposits. And when they withdraw their deposits, increasing interest rates. "As it lowers the market price of long-term mortgages and bonds, banks are forced to sell their long-term mortgages or their own government bonds at a loss. So banks have to accept capital losses."

As for how the crises, which so far only affected the US and Switzerland, will affect the EU, economists say, "Any country that raises interest rates lowers the value of bonds, stocks and real estate. And that will happen in the US as well as in Europe. The problem is whether they report the extent to which German and European banks' bonds and mortgages have lost market value. If they do, the decline in the value of their assets will eventually consume their equity. And that's exactly what happened in the United States. So, for Germany's future in Europe, the United States "It should be looked at as a model," he said.

Based on the statement made, among the predictions of economists; There is a desire of the USA to shift the crisis it is experiencing to Europe. The USA sees Germany as a major competitor in the steel industry, mechanical engineering and the automotive industry. Therefore, the USA tries to prevent Germany from standing as an economic competitor by putting pressure on the German industry and by turning the production activities that have fallen due to high energy prices to its advantage.