Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Uh Oh: The Gap Between France and Germany Is Growing

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The gap between the yield of French and German bonds continued to widen today as yields on the French bonds climbed higher.

Business Insider has a great chart right here.

I personally don't think there is much of a risk of yields on French debt skyrocketing. There's just no way the European Central Bank can withstand a run on France. It will, eventually, have to intervene if French debt gets too cheap.

That said, Europe has a horrifically bad record of fixing its own problems. World War I, World War II, Communism. All of the last century's problems required American intervention before they could be resolved. So it's possible that Europe once again needs the dough boys to come riding to the rescue.

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