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View Full Version : German Bond sales being impacted by Euro zone soverieign debt crises



Ray Frechette Jr
11-23-2011, 11:45 AM
http://news.yahoo.com/germany-france-clash-ecb-crisis-role-115310251.html

mizzenman
11-23-2011, 11:51 AM
Interesting.
The consequnces of this economical situation are hard to predict. China is not doing too well either. Looks like any country can get hit no matter how strong its economy.

Andrew Craig-Bennett
11-23-2011, 12:27 PM
Germany was trying to issue Euro denominated bonds with a 2% coupon.

That only makes sense for an investor if there is the possibility of a currency gain, which is something Germany is determined to avoid.

I'm not surprised their offer got left on the shelf - investors can buy Danish or Swedish or British bonds at a similar coupon with a currency upside, or Euro denominated bonds issued by Italy at 7%...

Tylerdurden
11-23-2011, 12:41 PM
Germany was trying to issue Euro denominated bonds with a 2% coupon.

That only makes sense for an investor if there is the possibility of a currency gain, which is something Germany is determined to avoid.

I'm not surprised their offer got left on the shelf - investors can buy Danish or Swedish or British bonds at a similar coupon with a currency upside, or Euro denominated bonds issued by Italy at 7%...

Yeah those sales are doing so well too.

There is just no way off the debt slavery train..... Unless your Iceland.

Tylerdurden
11-23-2011, 12:52 PM
Sarkozy: Europe's "Liquidity Run" Has Begun Because There Is An Unsolvable $30 Trillion Problem
http://www.zerohedge.com/news/sarkozy-europes-liquidity-run-has-begun-because-there-30-trillion-problem

Andrew Craig-Bennett
11-23-2011, 01:00 PM
Mark, does it strike you, as it does me, that the bankers collectively have done a wonderful job, over the past thirty years or so, in persuading people of two things:

1. Debt is a better source of money for your business than equity.

2. Not repaying your debts is very very naughty.

I think that these two propositions have created an illusion about the nature of business which has done nobody any good.

Tylerdurden
11-23-2011, 01:03 PM
It's pretty simple to understand really. If a whackjob like David Icke can understand it everybody should be able to.


http://www.youtube.com/watch?v=JDfUPeJj0Wo&feature=related

purri
11-23-2011, 05:24 PM
^ On that note "Spooks" has been an excellent series! Worthwhile viewing if you US fellas can get it.

Waddie
11-23-2011, 05:30 PM
Mark, does it strike you, as it does me, that the bankers collectively have done a wonderful job, over the past thirty years or so, in persuading people of two things:

1. Debt is a better source of money for your business than equity.

2. Not repaying your debts is very very naughty.

I think that these two propositions have created an illusion about the nature of business which has done nobody any good.


ACB, corporate tax law in the US favors high debt. Dividends aren't tax deductible for a company but interest on debt is, so it pays to be highly leveraged. This in part explains the acquisition mania we've seen.

regards,
Waddie

Ray Frechette Jr
11-24-2011, 10:44 AM
Are we Whistling past the graveyard??

http://news.yahoo.com/fearful-european-bankers-see-little-thankful-140130116.html

Andrew Craig-Bennett
11-24-2011, 11:08 AM
To be honest, I don't know.

Gerarddm
11-24-2011, 11:43 AM
...and on a smaller scale, Fitch just downrated Portugal's credit to junk status.

All these snowflakes are adding up to a blizzard. Have you all snow shovels and anoraks?