News from Europe isn't improving. Today, Germany attempted a bond auction and couldn't find buyers for about a third of the bonds. Looks like investors are casting a jaundiced eye even on Germany as a safe haven.
In truth, by some measures (primary deficit), Italy is performing better than Germany.
Austerity doesn't seem to be working for anyone. Investors, both in Europe and in the US, seem to be less concerned about deficits and sovereign debt and more concerned about the possibility of further deflation, recession and economic contraction. Americans should worry about what is happening in Europe, because a breakup of the Euro could drag the US economy down with it.
Keep your fingers crossed.
By the way, the US Treasury is having no trouble marketing securities at historically low rates.
So much for Standard and Poor's.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment