”I’m Freaking Out,” Says Euro Trader

15th April 1912.  The Titanic sank, another unsinkable vessel.

What a difference a week can make.  Last week traders were seeking high rates of interests on bonds they assumed were safe as they were denominated in Euros.  This week they are all selling, fearing that exactly what they believed was safe is now unsafe, viz. anything denominated in Euros.  It’s as if they now suddenly see clearly that the Titanic is only a ship like any other, which can get holed and sink, and that this latest ship, the Euro, just like the original, hasn’t got  enough life boats.

FT – A senior trader at a US investment bank added: “I’m freaking out. The investors who were bottom-fishing last week are all selling this week.”
Irish 10-year bond yields rose above 9 per cent, Portuguese yields jumped further above 7 per cent – a level Lisbon says is not sustainable – while Spanish yields rose further above 5 per cent. The euro dipped towards two-month lows, falling for the fourth day in a row.
The renewed volatility came as Germany rejected any suggestion of an increase in the size of the €440bn ($588bn) European financial stability facility – the eurozone rescue fund established by European Union finance ministers in May to help debt-laden members of the common currency zone.
”No more life boats available,” say the Germans.  OK, then.  That’s it.  It’s every man for himself.

Here’s the details –

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