 Perhaps the reason the credit market sees the risk of government
default as very low is a symptom of the "To Big To Fail" mentality.
You may think that after all the bond failures in Europe over the
last 7 years, institutional investors would think twice about having
governments dump into QE schemes. But it isn't as if they haven't
been in a default position before,
the Euro's just use different names for their government-backed
Ponzi schemes.
Mario Draghi illegally allowed the Greeks to buy back from their national banks.
Everyone looked the other way,,,,,,
Oh yeah, an orchestrated ECB asset purchase program to replace
and supplant all the national schemes they already have going.....that is
truly the signal of economic health just on the horizon.
Woud you buy a Greek Government bond today?
Let's up the quality, would you buy a Spanish bond,,,,,French?
Why would you? Because the credit markets have switched from
crack to crystal meth?
Sure this market is going to come down, but you don't need credit
market analysis to tell you that. Can you believe people are actually
considering about the desirability of Junk-Bonds? Who was that, Miliken?
No-one wants Euro Bond Trash, call it what you will, Euro-junk-bonds.
I hope they start buying their own trash, at least they will have a low yield,
so when they default, it won't hurt quite as much.
As for those here who actually buy metal, the prices are low, and
depending on deflationary pressures, may go lower. Obviously I don't want
to see silver lower than the summer's 18% range, but bring it on,
and DCA, ALL The Way!
 Commented 3791 days ago |
