funkymonks - sitting bull friday, page-167

If Germany is so againts one bond for all countries cant they put something together on a tiered basis?

Like, three tiers based on GDP-Debt ratio or something like that, but to ensure that people dont just buy bonds with the least risk or the highest interest they are all tied in, so they also get a portion of bonds from the other tiers? so if tier 3 is 7% they get some bonds at tier two for 6%, but to ensure that only the bonds with the highest interest are bought, the % interest changes so if tier 3 is 6% you get a better deal on the higher tier bonds..

..sorry if that sounds stupid, but just seemed like a good idea lol.

I just figured that if their going to do this as a whole then it needs to have some kind of control in there to stop the rates on bonds for those countries with a highest risk e.g spain, greece etc getting too high - so you provide leverage or whatever to ensure that the price is kept down?! I didnt do ecomonics 101 and i have had a heap of drinks tonight + am a noob so go easy..