Deutsche Bank analyst Jim Reid is still flabbergasted, astonished even, over the German Bund going negative for the first time ever. To prove his fixation, he produced his chart of bund yields dating back to the ‘who gives a shit days’ of 1807.
He blames a financial system that is indelibly broken and without wheels for this occurrence. Moreover, STAGNATION will likely preside over much of the western world until the fucking lunatics inside of these central banks stop propping up bonds with their playdoh money.
“Although there has been a creeping inevitability on this for several days now, this landmark remains a truly remarkable event. If one wanted a simple indicator to reflect a broken financial system then this would be a strong candidate,” wrote Deutsche Bank’s Jim Reid, in his Wednesday morning missive.
Reid puts the benchmark bund yield’s break below zero in the same league as “the moon landing, JFK’s assassination, John Lennon’s shooting, maybe even the Red Wedding episode from Game of Thrones.”
“It’s incredible when you think that the central bank responsible for the inflation rate in Germany has a target of (just below) 2% per year,” Reid wrote, reflecting on the chart. “Let us stress that until governments/central banks change policy, yields are likely stay at ultra-low levels due to secular stagnation-type themes and the overwhelming amount of QE hoovering up bonds. However it still reflects a broken financial system.”
On a side note, how dare he evoke The Red Wedding while John Snow’s fate to recapture the north lies in the balance.
Shameful.
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