Sunday, November 20, 2011

THE ONGOING MISMATCH: High-Grade Corporates Benefit from Europe's Woes - Barrons.com

High-Grade Corporates Benefit from Europe's Woes - Barrons.com

As with the during-bubble run-up in housing prices in excess of income changes; so now, it would seem there is a developed world run-up in demand for new debt (even Greece in supposed austerity has a projected 10% of GDP deficit for the upcoming year) that is totally out-of-sync with the real returns offered to savers to provide the funding for the debt.

And, as governments' need low rates to be able to afford the interest due on their debt; and, as growth isn't happening under the regulatory and fiscal frameworks these governments feel necessary politically; and, as the governments (US and EU) appear to want money to be printed...

draw your own conclusions.

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