Loading ...Maddog – that’s interesting and makes complete sense. The only thing I would wonder is that if money is fleeing Europe into treasuries, wouldn’t that force rates down on this side of the pond?
Clearly, some of that negative yielding money should be going into gold and probably is, but we live in a world where paper gold is king and can be manipulated especially in times of stress to make it seem as though everything is OK.
Amazing that Armstrong thinks the US will escape relatively unscathed. But it kind of makes sense.
Ipso – I would think there is zero trust between banks, especially those in Europe. Funny how treasuries and mortgage backed securities are considered good collateral. I guess they will be until they’re not…