Bond Bites Man

Yields on Greek & Spanish bonds (credit downgrade looms) are up; Irish bond yields are also up to 8.4%, which, in real terms is over 10%. Something is going to give because that is unsustainable when real GDP is CONTRACTING at a 2% rate. In the old days currency devaluation & debt restructuring would have occured by now. And with GDP growth in Germany expected to slow the Euro is clearly not the place to be.