Pragmatic Capitalism

Capital for Living a More Practical Life


By Walter Kurtz, Sober Look

The concept of German decoupling from the Eurozone recession may have been wishful thinking. The latest German Manufacturing Purchasing Managers’ Index (PMI) has converged with that of the Eurozone as a whole. Manufacturing PMI is a closely watched index and tends to be a leading indicator for the GDP.

German (white) vs. Eurozone (orange) Manufacturing PMI

In response, Spain’s 5yr sovereign CDS hit a new record high of 511bp (previous high was 510 on 4/16).  The Eurozone is headed for a double dip.

Spain 5yr sovereign CDS (Bloomberg)
Sober Look

Sober Look

Sober Look was founded by Walter Kurtz, a New York based hedge fund manager and credit markets specialist.
Sober Look

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