Why would anybody buy European debt?

Parent Cafe
1

<p>This is for the five people who might have an interest…</p>

<p>[Merkel</a> Greek Gambit May Backfire - Bloomberg](<a href=“http://www.bloomberg.com/news/2011-11-10/merkel-s-taboo-breaking-gambit-opens-pandora-s-box-as-euro-exit-is-mapped.html]Merkel”>Merkel Greek Strategy Risks Backfiring as Exits Route Mapped - Bloomberg)</p>

<p>I don’t get it…it’s not like yields are so high that you are protected. The Euro might blow.</p>

<p>Countries might leave or be forced out of the European union.</p>

<p>Cds…you have counter party risk…the rules may change so you don’t get to collect…</p>

<p>And Europe, for all it’s talk, might inflate so you get paid back in cheaper dollars…</p>

<p>I don’t get it…what am I missing?</p>

2

<p>A very old and very valid Wall Street adage: In confusion, there is opportunity.</p>

3

<p>Another wonderful story about the genius bankers…</p>

<p><a href=“http://www.nytimes.com/2011/11/11/business/global/sovereign-debt-turns-sour-in-euro-zone.html?_r=1&src=me&ref=business[/url]”>http://www.nytimes.com/2011/11/11/business/global/sovereign-debt-turns-sour-in-euro-zone.html?_r=1&src=me&ref=business&lt;/a&gt;&lt;/p&gt;

4

<ol>
<li>to try to get trade deals.</li>
<li>the decision maker’s loyalties are more to Europe than the ones with the money.</li>
</ol>

5

<p>Why would someone split tens?</p>

6

<p>:)…</p>

7

<p>“regulators who permitted banks to treat the bonds as risk-free…”</p>

<p>Fee per allowed transaction = self justification. Aka “greed is good.”</p>

8

<p>

With your own money? Of course not! But if you can use someone else’s money to take a flyer, why not? Heads I win, tails you lose.</p>

9

<p>Great wave video on the bottom of that Bloomberg article!</p>

10

<p>FED has given money in the past, they will give in the future (US taxpayers are suckers) </p>

<p>Fed gave $16 trillion in emergency loans</p>

<p><a href=“NEWS: 11 Senators Back House Progressives in Demand for Passage of Entire Biden Agenda » Senator Bernie Sanders”>NEWS: 11 Senators Back House Progressives in Demand for Passage of Entire Biden Agenda » Senator Bernie Sanders;

11

<p>I would on every big up day like Friday, slowly add onto a short position in several European countries - this union is toast.</p>

12

<p>"Banks had further incentive to overlook the perils of individual euro zone countries because of the fees they earned for underwriting sovereign debt sold to other investors. Since 2005, several dozen banks in Europe and the United States have earned $1.1 billion in fees from selling bonds for European governments, according to Thomson Reuters and Freeman Consulting Services. "
There’s your answer… $$$$$$$</p>