Pragmatic Capitalism

Practical Views on Money, Finance & Life


Via Warren Mosler.  No comment needed although I will add that I have talked to a few people based in Europe who told me that they were seeing a decent bid in Netherlands and German Bunds today.  Regardless, I think the sentiments Warren passes along are representative of growing concerns in the region and explain exactly why we’re seeing the yields blowout in Belgium, France, Spain, etc:

I just received this.
Seems money managers with fiduciary responsibility are holding off on buying any euro member securities since the 50% Greek haircuts were announced.

Our Trading Desk reports “mayhem” in the AAA Eurozone markets
– France 11bps wider
– Netherlands 6bps wider
France now 178bps over Germany
Increasing talk/fear of Eurozone break up and capitulation trades in AAA markets are widespread.
We are seeing no real demand for anything – even Germany.
Tomorrow’s Shatz auction looks a big ask with a yield of 30bps and no risk appetite out there.


Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

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