It's so obvious that PIIGS debt is just too cheap. In the last year Italy's debt to GDP increased from 120% to 130% yet yields are falling to ~3.5%.
Greece is not recovering. It's capital imports are down because the country's running down it's stock piles (due to negative capital investment). The country is running into a brick wall but it's 10y bond yield is ~7.5%
While the focus is on the deteriorating situation in the Ukraine money seems to hide behind sovereign debt.
Sometime this year the euro folly will again be the talk of the town. Gucci's promise to 'do what ever it takes to keep the euro' will ultimately be shown to be the words of a gas bag.
Hot air just won't keep bond yields down. Loss of confidence in EZ leaders seems just round the corner. Huge increases in yields are inevitable.
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It's so obvious that PIIGS debt is just too cheap. In the last...
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