you hear wrong with respect to European banks - leverage does not equal bad assets.... yes uk is bankrupt - but it is not part of euro. i am out of here. p.s. wow - what a low indirect bidder participation - amazing
it's not a flight to treasuries. money is temporarily parked at treasuries by short funds, traders profits etc. the money has to be recirculated otherwise long term inflation will destroy the value of money or buying power weakens of cash. FED and US gov't has high debt so inflation is the only way and best wayt to lower national debt without taxes in the long term. with inflation the national debt loses value.
I think there is a common misunderstanding of inflation. Zimbabwe has a hyperinflation where money is literally being printed. Thats why there are people holding carts full of cash. samething happened in weimar germany. Thats not whats happening right now. we had a debt credit inflation bubble. We could go the zimbabwe route at somepoint, but that would mark the end of the world