Quote:
Originally Posted by parsonsj
Just a couple of points here.
1. "Europe" can't sell debt government debt. Only sovereign governments can, and there's a big difference in yields between Spanish yields and German yields in bond markets. That's a significant problem in how the euro is set up. Shared currency, but not a shared ability to raise money via bond auction.
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Well - exactly - and think of it this way.... you pay your bills and have a low mortgage rate (Germany)... would you consider guaranteeing your neighbors (Greece/Spain/Italy) debt when you know he's out of work, and owes everyone in town, and spends money like a fool??