What would happen if, say miraculously the PIIGS bonds were insured or widely perceived as safe as a result of some development? Would the correction in safe haven bonds and currencies not have a sort of backlash for those currencies and their respectively denominated markets? The yield starved would exit dividend stocks and corporate debt en masse, in favor of "safer" and better (than before) yielding treasuries and such, right? Also, this would effect carry trades, or the "direction" of them very drastically, say there was an 'all clear' given, carry would reverse into a carry from the dollar or swiss franc, yes? I could very well be wrong here as I'm not nearly as well versed in theory as some others, but I had one of those light bulb moments. Enlighten, discuss, correct.