How’s That Austerity Working Out?
The BBC recounts the sad tale of the latest ‘victim’:
Meanwhile, on Wednesday Germany placed just 3.6bn euros (£3bn) worth of 10-year bonds, from 6bn euros on offer.
Analysts worried that the eurozone debt crisis was beginning to slip into the German economy, usually seen as a powerhouse, as the euro dropped sharply on the foreign exchange markets after the auction.
“There’s been a lot of talk lately that perhaps Germany isn’t the safe-haven that many people thought it was,” said UBS currency strategist Chris Walker.
Danske Bank chief analyst Jens Peter Sorensen said the auction “reflects the deep mistrust to the euro project rather than a mistrust to German government bonds.”
For some reason many investors apparently think that impoverishing your major customers is not a good idea. But, Angie thinks that there must be more pain for the ‘sinners’.
The euro was looking like a strong contender to replace the dollar as the signature currency in global trade, and now it looks like a candidate for coin collectors specializing in obsolete money.
November 23, 2011 Comments Off on How’s That Austerity Working Out?
