A toxic trifecta for bondholders.
Even in “rich countries,” more and more people “are no longer willing to tolerate the status quo.”
“Capital flight” takes on a bitterly ironic meaning.
The Risk of Contagion of a full-blown Mexican crisis is far greater today than it was during the Tequila Crisis 22 years ago.
Worse than the 1994 “Bond Massacre,” with “sustained double-digit losses on bonds, subpar growth in developed markets, and balance sheet risks for banking systems….”
But who benefits from the War on Cash?
All these events conform to a well established script.
After surging 206% since February!
Over the Christmas holidays when no one was supposed to pay attention, the bailout costs of Monte dei Paschi, third largest bank in Italy, soared 75%!
Hence the bloodletting in what’s considered one of the most conservative investments in the world.