The mood is far from optimistic. A “disastrous” sale of German benchmark bonds sparked fears on Wednesday the debt crisis was beginning to threaten even Berlin. Yesterday, the spread between Spanish 2Y and 10Y bonds has dropped to record lows as the yield curve inverted the most since 1994. 
Having said all that, here we present you with this newly released (and EXCELLENT) report by Nomura’s Richard Koo to discuss in detail all the euro issues including: anxious eurozone residents, structural problems, german austerity efforts, idiotic eurozone policymakers, balance sheet recession vs. inflation … and everything else that Europe does not understand.

73564836-NMA-Richard-Koo-22-11-11

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