Thursday, Feb 12, 2015

Danish 2month bonds reach MINUS 2%

Uk.investing: Denmark 2-Month Bond Yield

1 month is not as bad, neither is the 3 month. Market seems to be pricing in DaneExit in 2 to 3 months time.
Co-incides with potential Greek showdown. Could ECB buy Greece at the expense of loosing Denmark? Chump change?!

Posted by libertas @ 06:51 PM (5009 views)
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8 Comments

1. khards said...

Libby, any educated guess before it all blows up?

Thursday, February 12, 2015 08:02PM Report Comment
 

2. libertas said...

I don't think it will all blow up. What I see, is that Denmark just sold the family jewels to keep pace with the Euro, as did Switzerland. They will attempt it again most likely. If the Euro breaks down, it will be a long slow grind. Probably will not happen until there is a Med-Union, which itself would likely disintegrate. It could take a decade or more.

The Danish break is minor, but part of a trend. I see it happening two to six months time, and then Denmark will start growing again, like Britain, because floating currencies allow markets to resolve imbalance.

The only currency unions that work are where debt is pooled and tax and spend is used to balance economies. EU has none of that. It will shrink until it finds it. If the Eurozone agrees to support Greece and support Denmark, they will remain part of the Union. If they do not agree to support each other, they go their own way, either in two months or twenty years, but split they will.

Thursday, February 12, 2015 08:39PM Report Comment
 

3. libertas said...

The rate was MINUS 1.4% only yesterday.

Look the other way, no crisis here.

After the Danes voted against joining the Eurozone, they should all be out protesting "their" central bank spending ALL their currency reserves defending the peg to buy Euros upon which they will take massive losses once the peg breaks.

Thursday, February 12, 2015 09:56PM Report Comment
 

4. taffee said...

The dotcom boom had rationale behind it until it was realised to was financial madness

Friday, February 13, 2015 05:44AM Report Comment
 

5. khards said...

The bigger issue I see is that the product of the current system we live under is what we are experiencing, the 99% become poorer and the 1% become richer.
So governments and central banks come along and stimulate by printing to spend on projects and cutting rates, which does stimulate economic activity by putting money back into peoples pockets.
The money is then instantly sucked out by our current economic model, the result being interest rates need to fall further or more stimulus is needed.

Rinse and repeat since the 90's. There has to be a limit where this comes to a head, minus 10% rates anyone?

Of course the system is a product of human nature greed, survival, fear etc. On one person can come along and change what we have named capitalism, it has to evolve.

I don't buy predictions of it not blowing up, because the system would never evolve like is has been since day 1. It's also clear that technology is speeding up feedback within the system (online news, tv, internet trading etc.) so you would expect to see the system evolve much faster than before.

In fact you may expect the system to blow up much faster than before. I for one can not think of a single reason that the next crisis would take a longer period than the one between 1973 and 2007. Given the increase in technological advances and the effect of them upon capitalism, I should think a shock is well overdue.

Friday, February 13, 2015 07:52AM Report Comment
 

6. taffee said...

The problem is that these are unprecedented conditions so no one knows what will happen

Japan gives a clue but that was one country

It's worth remembering the current economic policies are in place because.there is nothing else they could
Come.up.with.....because things were/are so bad!

Friday, February 13, 2015 09:03AM Report Comment
 

7. libertas said...

Denmark 2 month yields back up to MINUS 1.650.

The real story on this is that volatility appears to be exponentially rising in Denmark, consistent with them heading towards Dane-Exit. At which point, Danes become super Euro sceptic and they are ripe to following UK out of the European Empire / Fourth Reich.

Friday, February 13, 2015 01:35PM Report Comment
 

8. hpwatcher said...

christ, he just can't keep himself away.

Friday, February 13, 2015 03:46PM Report Comment
 

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