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The Eurozone's giant sucking sound | 136 comments (136 topical, editorial, 0 hidden)
Re: Liquidity in life; Credit in death. (n/t) (none / 0)
bond rates would adapt going forward, taking into account the higher inflation.

I'm not totally convinced that the long-maturity end of the bond market works that way (and I know for a fact that the short-maturity end does not).

In any event, it would denude the value of outstanding portfolios without precipitating cascading bankruptcies the way the alternative option for denuding the value of outstanding bond portfolios (which is to say default) would.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Sep 7th, 2012 at 10:12:13 AM EST
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The Eurozone's giant sucking sound | 136 comments (136 topical, 0 editorial, 0 hidden)
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