Bond Yields Plunge in Italy: Hello Christine Lagarde!

-edited

The ECB and EU elected to ignore Italy's debt and soon to be a monstrous deficit. Bond yields plunged.

At the beginning of June, the ECB and EU walked down from targeting Italy with excessive debt procedures. And now, lovey Dovey Christine Lagarde takes over where Mario Draghi left off.

Crucially, for Italy, it's not a German central banker at the helm.

Happiest Man in Europe

Expect More Balance Sheet Wonders

German 10-Year Yield

Long Term Prognosis

Changing of the Guard

I agree with the above Tweets by Daniel Lacalle.

Meanwhile please note the changing of the guard: Winner France: Germany's Time Has Come and Gone

Mike "Mish" Shedlock

Comments (14)
No. 1-7
leicestersq
leicestersq

Seems like the operators are pulling the control rods out of the monetary reactor, just like they did at Chernobyl reactor 4. At Chernobyl they didnt get any more power, so they pulled more rods out, and the Central bankers are not getting any more inflation, so they are pulling their controls out.

I wonder what will happen next?

JonSellers
JonSellers

Why the expectation for growth? The industrial revolution is long over. The great core inventions have played themselves out and there is nothing new on the horizon. Populations that exploded and are now stable or in decline. The world has massive material abundance. We've run out of space to put stuff. Today there is far more money than any possible investments can absorb. Interest rates should be at zero. Negative interest rates just means you can't give the stuff away.

RonJ
RonJ

" And now, lovey Dovey Christine Lagarde takes over where Mario Draghi left off."

More of the same that doesn't work. Einstein called that insanity.

RonJ
RonJ

"The ECB and EU elected to ignore Italy's debt and soon to be a monstrous deficit"

The Gilets Jaunes. Those running the shows are worried about civil unrest from a day of reckoning. They all try to keep kicking the can to evade it.

TheBigRoastBeefFrog
TheBigRoastBeefFrog

This is a huge mess. If somebody wants to follow a really really good lecture on the German / EU Banking system and how it is collapsing, the implications it has on society I can only encourage you to see the lecture from Dr. Krall (Austrian Economics). Unfortunately, there is no English version. You will have to follow it with subtitles.