In an interview with Michael Diekmann, international head of global Allianz insurance concerning their investment strategy, he states publicly that they now avoid sovereign debt for any new investment!
Handelsblatt Morning Briefing <[email protected]>
This is demonstrating what we have been warning about. This is what ALWAYS takes place in such a economic crisis that we are confined in nowadays. Forget the nonsense of lowering rates and stimulating the economy. This is the REAL trend to pay attention to. As capital flees Sovereign Debt, interest rates will begin to RISE and that will rekindle inflation forcing banks to start bidding for capital. So hang-on tight. The worst lies ahead.
