(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

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Posted January 11, 2012 at 4:40 am

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