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Following alarmist end-times reporting on the turbulent state of the market and with the caveat that "numerology is a mrk (sic) of the truly loopy!" I feel it's only right to point out that the Bank of Italy believes it can bear an 8% yield. Many would argue that this absurd and superstitious obsession with so-called "mystical numbers" is little short of insane.
But an Ontario reader has this to say:
"Worth remembering though – it wasn’t long ago that no Government could borrow for as LITTLE as 8%. The modern era of low interest rates is quite a recent phenomenon, and it’s one of the things that made the huge superboom from 1992-2008 possible. No-one would have borrowed money for sub-primes at historic interest rates. Ironically low IRs followed from low inflation... and everyone borrowed, Texas consumers to Italian politicians alike..."
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Interesting. Perhaps our worship of Mammon has destroyed the West's collective memory? Still, as the annoying phrase runs, that was then, this is now...
God bless,
LSP
