pk"What Anglo-Saxon economists need to understand is that the Germans and the ECB really, really don’t share our worldview; they really do believe that austerity is all you need. And all indications are that they will cling to that belief, even as the euro falls apart"

mark that for future reference

btw

does pk fail to ponder a key fact here :

the sov-bonds were pre crisis  owned in large part by the leading banks of europe.....
or so we have been told

if not so now  who did they off load em on ??

could it be in part at least on  insider owned
call-lessly sourced private funds
that can wait and wait unlike corzine types
and take the huge capital gains out there
once the piigs bond rates drop like stones apres the point in time
when on going ECB "participation"
becomes conventional wisdom


note present french  versus italian market rates imagine the price moves
as the italian market rates come down near to french levels
  and they both move closer to german rates