Euro bonus – what will Germany do?


A few days ago I wrote about a phenomenon I called euro bonus, defined as the difference between a normal interest rate and the current interest rate, which Sweden and some other low debt countries are enjoying for the time being. My point was that this bonus over time accumulates to large amounts of money, benefitting the well managed countries – in Sweden´s case maybe more than 200 billion SEK over a ten year period. The country receiving the greatest benefit from the euro bonus is … [Read more...]

Euro bonus – only for some


Under the surface the Euro crisis is producing dramatic consequences, which will be addressed in two different articles. The topic of my first post is something I´d like to call Euro bonus. The credit worthiness being contested for many national borrowers, has led to an abnormal demand for bonds issued by a few stable economies – which in its turn has pushed down their interest rates to abnormal levels. Thus the well managed economies can borrow money at levels less than the real interest … [Read more...]