Tuesday, 11 August 2015

The Euro tragi-comedy, Part 93

The Greek debt crisis has saved the German government some €100bn (£70bn; $109bn) in lower borrowing costs because investors have sought safety in German bonds, a study has found... 
The IWH study says every time this year there was a spike in the Greek debt crisis, which made Greece's exit from the euro appear more likely, German government bond yields fell. Whenever the news looked better, Germany's bond yields increased.
If you had your cynical hat on, you might wonder if the German government was playing a game of "heads I win, tails you lose"... 

There are lessons for the UK here: it is an awful lot easier to pay for your public borrowing if you don't let it run out of control.  Presumably the socialist dreamteam of Corbyn/Murphy would tell it otherwise.


Bank of Popadopolus said...

I wonder if I could take out a loan so huge that lenders would prefer to carry it around as a credit for all of time, rather than write it off. Even though it won't ever be repaid.

Would be nice to owe so much that if I threatened to default they'd volunteer to lend me even more, just to make the payments.

CityUnslicker said...

Bank - that happens all the time. A huge amount of UK corporates still exist on 'extend and pretend' terms.

Nick Drew said...

individuals do it, too - and have done for yonks

how many times do you read an obit which ends: when he died, he was found to have been deeply in debt - ?

Blue Eyes said...

I read an article a while back criticising the German government for trying to run a surplus, on the ground that people need safe reliable instruments to invest in.

CityUnslicker said...

BE, when the opposite is true. To spur growth what you really need is high risk opportunities that result in dynamic market change.

The worst thing to do is buy gilts and gold - the status quo is reinforced and the entrepreneurial sector is starved of cash. If you then invest in lots of high risk things the wins and losses will even out for the investors - but the economy will be dynamic.

The US is a good example of this, its T-Bills over overwhelmingly held by foreigners and its stocks by US funds.

Blue Eyes said...

Yes CU indeed. Perhaps my comment did not express the level of scorn which I felt as I typed it!

adham said...

شركة تنظيف بالطائف شركة الهدي افضل شركة نقل عفش بالطائف كذلك هى افضل شركة رش مبيدات بالطائف
شركه الهدى
شركة رش بالطائف
خدمات الطائف
شركة تنظيف بالطائف
شركة تنظيف فلل بالطائف
نظافه عامه بالطائف
شركة تنظيف منازل بالطائف

adham said...

شركة تنظيف شقق بالطائف
نقل عفش بالطائف
بالطائف شفط بيارات
تسليك مجارى بالطائف
تنظيف خزنات بالطائف
رش مبيدات بالطائف
نقل عفش بخميس مشيط
شركة عزل اسطح بالطائف

adham said...

ان اردت نقل عفش منزلك بالدمام ابيات الشرقية من اهم شركات نقل العفش بالدمام والخبر والجبيل والقطيف والاحساء
شركة المتحدة
شركة نقل عفش بنجران
شركة نقل عفش بخميس مشيط
شركة نقل عفش بالطائف
شركة نقل عفش بمكة
شركة نقل عفش بينبع
شركة نقل عفش بابها

adham said...

شركة نقل عفش بالرياض
شركة نقل عفش بجدة
شركة نقل عفش بالدمام
شركة نقل عفش بالمدينة المنورة
شركة نقل عفش ببريدة
شركة نقل عفش بالقصيم
شركة نقل عفش بتبوك