Courtesy of Mish.
Steen Jakobsen, chief economist at Saxo Bank in Denmark has some interesting “stress” charts in this week’s email.
click on any chart for sharper image
France Germany 10 Year Bond Spread
Steen writes “The 10 Year spread between France and Germany have totally lost value. The ECB and French government is forcing domestic players in France to buy government bonds due to regulation and pro-government incentive structures.”
“France and Netherlands are two economically challenged countries in the core of Europe which continues to perform dirigisme instead of attending to reforms.”
Dirigisme means economic planning and control by the state. Steen does not believe central planning works and neither do I.
European Demand Deposits
Steen writes: “Europe’s depositors – mainly the weak Club Med states (Greece+ Portugal) continue to take money out of the country – even increasing the speed with which they do it.”
Steen sarcastically added “Sure Mr. Draghi, the ECB has been a great success. The shown data is only including January as IMF data is as slow as their willingness to accept changes. Imagine when March and April data is in.”
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