(Der Spiegel) Investors Pay to Lend Germany Money

Posted by Kendall Harmon

Investors in Europe are so worried about the euro crisis and so desperate to find a safe haven for their cash that they decided to forego an interest rate, and even paid a premium, for the privilege of lending Germany money on Monday.

The auction of six-month German government bills on Monday produced a negative interest rate. Even the Federal Finance Agency, which manages Germany's debt, was astonished. "That has never happened before," said a spokesman.

Read it all.

Filed under: * Economics, PoliticsEconomyCredit MarketsThe Banking System/Sector* International News & CommentaryEurope--European Sovereign Debt Crisis of 2010Germany

Posted January 11, 2012 at 4:40 am

To comment on this article: Go to Article View

The URL for this article is http://www.kendallharmon.net/t19/index.php/t19/article/40583/

© 2014 Kendall S. Harmon. All rights reserved.

For original material from Titusonenine (such as articles and commentary by Dr. Harmon) permission to copy and distribute free of charge is granted, provided this notice, the logo, and the web site address are visible on all copies. For permission for use in for-profit publications, please email KSHarmon[at]mindspring[dot]com

<< Back to main page

<< Return to Mobile view (headlines)