Is Germany’s debt position worse than United States?

November 29th, 2011

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It is widely believed that Germany’s fiscal position is the strongest in Europe and that it is the pillar of the Euro-zone.

Then something unexpected happened last week.

The German government could not borrow all the money it needed! Well, not at the currently low interest rates, at least. What if the financial market?realizes?that Germany’s fiscal position is actually worse than the United States??Kyle Bass, the manager of a hedge fund called Hayman Capital, ?who made millions by gambling against sub-prime mortgage bond market, explains…

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  • John

    This hedge fund guy is just an opportunist. Why doesn’t he said so before the bond auction? That’s because he is just as clueless as the others.

    Let me tell you. There are others who had foreseen this. The real reason is simple. When the government strong armed the private Greek debt holders to take a 50% haircut plus renunciation of their CDS, the powers that be were essentially rewriting the rule of CDS and bond market. Suddenly, buying protection doesn’t protect you anymore. And the powers that be essentially became the market. Therefore, the private sector has shunned the market. They have dug themselves into a downward spiral with that.

  • John, Kyle Bass said that BEFORE the bond auction.


  • John

    Can you point me to the original video? It is appropriate for me to make that assumption, since you only published this on 29 Nov. It is always more convincing to showcase forecasting ability by anticipatory publishing.

  • You should not have assumed in the first place. It is also not the intention of this article or Kyle Bass to showcase any anticipatory prowess.
    If you are convinced that Kyle Bass is clueless, why bother to find out more?

  • John

    I never said I am convinced he is clueless. That is part of that assumption. You can only be convinced after facts.

    First you mentioned the ‘unexpected’ event, then followed by “Kyle explained”. You obviously put it in a way that follows chronological order. You made it look that way. So swallow up and just admit it.

    Btw, I found out about Kyle before I even posted that question. That was used to get you to respond the way I totally anticipated you would as someone who think he knows it all. That was part of the Darden MBA value investing conference.

    And I stand by my statement that he is an opportunist. He bought many CDS and of course preaching the eurozone to collapse is in his favor.

  • Well, you used the word “clueless” on him.

    We’re sorry that you assumed.

  • And by the way, we’re surprised that you place so much emphasis on the chronological order of sentences when the point of this article is to explain the debt situation of Germany.

  • Robert

    Since you’re so smart, why are you wasting? your time here acting as if CIJ owes you a living?

  • Bibi

    +1 Haha… I detect a tone of sarcasm here.