German Bond Volatility and Lessons from Japan

The stunning rout in German bonds over the past week has left many investors dumbfounded.  With an 800% increase in yield over a matter of days that wiped out roughly $450 billion dollars according to the Wall Street Journal, German bonds have experienced an unprecedented level of volatility for the so-called “safe” asset.  

“I am Secretariat. Why would you bet on anyone other than Secretariat?” – The Fall of Bill Gross

Good insight on Bill Gross's downfall from his lofty perch in Newport Beach. 

From Bloomberg:

“Money, big money, personal egos, differences of opinion, slights and disagreements built up over 10 or 15 years -- that’s a pretty explosive combination.”

Financial Repression

If you have ever wondered what financial repression really means, here it is summed up in one picture.  Via Fidelity.