Posted by WARREN MOSLER on November 22nd, 2011
The German 10 year just traded above 1.9%.
The 10th plague is now beginning to threaten the Pharaoh.
If I were cynical I’d think it would go down something like this:
First, German insiders give the nod to their cronies.
The Great European Relief Rally begins.
The euro begins to firm, stocks start to rally, etc.
Then, noises start coming out of Germany to the effect that
they might consider ECB support if austerity could be guaranteed,
causing prices to suddenly gap higher as shorts try to cover with no sellers in sight.