Tuesday, July 17, 2012
Cash flows out of Spain & Italy to UK
"The flight to safety has prompted a collapse in yields on government bonds in Germany, the US, Switzerland, Sweden, and to some extent the UK too. Naturally, this has also driven up their currencies, except in the case of Germany, where because of the single currency, no such thing can happen". (It's unsustainable, but how much longer will it last?).