Just a quick word here on three interlocking stories involving Spain and Germany that have come up via the US and European press. Right now, Spain is at the center of the European sovereign debt crisis. The spread between Spanish and German yields is at a record. Spanish yields on 10-year paper are at euro record highs as well.
This reflects not just distress in Spain but also a flight to safety for Germany. In effect, Spain is a 'loser' from the crisis while Germany is a 'winner'. A story in Belgian daily de Standaard points this out with the headline "Duitsland profiteert van financiële crisis Europa" - Germany profits from the financial crisis in Europe. Accordingly, economist Jens Boysen-Hogrefe calculates that Germany has saved 10 billion euros in int...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.