Wednesday, November 23, 2011

Euro On ‘Death Watch’



Euro On ‘Death Watch’ After Investors Spurn German Bonds -- CNBC

Investors began to fear the worst for the euro after unusually weak demand at an auction for bonds from Germany, the region’s largest economy. One analyst went so far as to put the currency on a “death watch.”

Germany sold just 60 percent of the 6 billion euros in 10-year bunds it brought to auction, about the weakest demand seen for the country’s debt in the currency’s 16-year history, economists said. The rejection of debt from Europe’s safe harbor marks a new stage for the crisis.

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Update:
"Disastrous" bond sale shakes confidence in Germany -- Reuters

My Comment: This blog pointed out Germany's weaknesses yesterday. Bottom line .... almost every major country in Western Europe has spent too much, accumulated too much debt, and now .... has trouble paying the bills because interest payments are eating up their budgets.

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