Mike Whitney — "The nightmare scenario is beginning to unfold"

“We are caught, it seems, in one of those self-reinforcing loops that almost always presage a collapse.”– Michael Pettis, China Financial Markets

Germany’s “failed” bund auction on Wednesday was a real gamechanger. It means that Europe’s biggest and most powerful economy will not escape the contagion that’s swept across the south. Germany’s borrowing costs will rise and it’s finances will be put under a microscope. But that’s just the half of it. What’s roiling the markets is that investors are now pricing in the probability of a eurozone breakup. That’s what all the commotion is about; the nightmare scenario is beginning to unfold....

Read the rest at CounterPunch

Germany’s “Failed” Bond Auction

by Mike Whitney

Note: Whitney. who is usually in paradigm with MMT, cites James K Galbraith