ECB’s pivot toward rate hikes feeds fears of new bond crisis

YahooFinance-Bloomberg/Carolynn Look/6-27-2022

Cartoon by Ed Stein of dollars flowing in an hour glass and investor caught in flow saying 'keep printing'

“European Central Bank policymakers gather on a Portuguese hillside on Monday with the sinking feeling that their rush to tackle the inflation shock they failed to forecast risks both a recession and echoes of the euro area’s sovereign debt crisis.”

USAGOLD note: Old crisis same as the new crisis? The fear of default inspires a wave of selling which drives up rates for the nation-state in question. “The ECB,” says one analyst (a former BoE policy maker), “is in great difficulty.” That happened quickly………

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