The WSJ asks: “How long can bonds from Europe’s worst-off countries rally while their
economies slide?”

Surely, this must be a rhetorical

The answer is simple indeed: as long as
the political class in Europe continues to re-assure and comfort investors by stating that any
and all inherently speculative losses will be covered at the expense of the hordes of taxpayers at their disposal (including
via seizing, impounding or confiscating any or all of their lifetime savings), this
“gravity-defying” phenomenon will continue.

For them – our self-proclaimed democratic rulers – it is the sole way to be friends with all those
financiers and sponsors that are essential for them to hang on to continuing political
power and, of course, to cozy up with these brethren, enjoying life in the privileged caste.

No higher math is needed.

Grimbergen, 24 April 2013