The Vicious Spiral May Be at Hand
With the exception of European countries experiencing immediate debt issues -- Greece, Portugal, Spain and Italy -- sovereign yields throughout the world's primary and secondary economies are reaching all-time lows simultaneously.
This is happening across the yield curves in each country's sovereign bond market. As monetary authorities have increasingly lowered short-term interest rates to record low levels, and increased money supply in an attempt to stimulate borrowing and lending activity, the banks have instead recirculated the capital into long-term sovereign bonds, essentially lending the money back to the countries....447 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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