Do you recall when Italian yields were blowing out in the summer of 2011? Had it not been for european QE, Italy, Greece, Spain, Ireland and France probably would’ve failed and the euro and all of the people who use it–fucking destroyed.
On Tuesday, Italy sold 1.75 billion euros of zero-coupon, two-year paper at a yield of minus 0.023 percent for the first time ever.
The lowest yield paid at an auction of Italian bills had already fallen into negative territory in April, when six-month debt fetched a minimum yield of minus 0.011 percent.
Wednesday marked the first time in which also the average yield and the maximum yields were negative.
This is in stark contrast with a record 6.5 percent yield Italy paid to borrow over six-months in November 2011, when concerns over its public debt — the world’s fourth-largest — mounted amid fears of a possible break up of the euro zone.
For those of you who swear QE does nothing: eat on that Italian sausage. QE saved the fucking world!
Italy, europe’s most indebted nation, can now MAKE MONEY while borrowing it. What a splendid way for the west to finance its way out of a mess, without actually having to do anything at all. Keep spending, eating, drinking, and borrowing. The plebs will pay you to take their money.
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QE saved the world yes, but did it cause inflation, definitely not in wages or median household income. The best is when SSA didn’t raise SS this year because energy destroyed CPI while the majority of seniors budget healthcare and housing have been exploding, QE saved the world but at what cost…
QE caused this massive displacement where the only solution is to continue to (dig the hole) have to lower rates lower-lower-lower (to beyond absurd neg. levels) until
hole is so big, next crash occurs
bottom line
cant deny
MF Global is raking in the dough these days. Great trade Corzine!
So happy he blew up on an early trade.
When your bonds are bid high
Close to a negative Pi
That’s amore …..
Couldn’t help myself
all QE did is to make certain people look good while amassing a huge pile of shit, which is still heading for the fan. only a matter of time
And guess who fell for it
uhhuh
uhhuh
dumb americans
uhhuh
dumb sixpack worldseries moe-rons
heh
hehehheh
Uhhuh
The Islamic hoards from the Mid East will do to the EU what the yields several years couldn’t do and QE won’t be able to save it.
And speaking of Corzine why hasn’t he been indicted (yeah, I know, a political elitist and is immune).
A JIHAD ON YOU!!!!
I don’t think one can argue against QE continuing to float the boat. But you have to question when companies are allowed to continue to exist just because of ZIRP. A healthy economy unfortunately has winners and losers. Too many losers allowed to exist at this point, including some sovereigns like the PIGS. Sovereigns can restructure look at Iceland.
Additionally, the fact that someone is buying -ve rate paper might illustrate that they are not concerned about return on capital, but rather return of capital.
But, that’s what bears said, Would occur,
4 years ago
Meaning,
Our scenario is playing out. The equity part
hasn’t occured
yet So What
haha SLCA
Le Fly … Your too quick on the draw sometime
out of TWTR again for win #4. what a great stock.