France has sold it's short-term bonds at negative interest rates for the first time. Aghh, I'm happy for this 'good' news for quite a number of reasons. First, it a sign of investor confidence on the larger European countries, especially for Holllande's new administration, which was being branded as a potential reckless spender and bad news for investors. Secondly the Very Special People (VSP), that I, the mr&mrs know-it-all had been shouting at the top off their voices saying that fiscal consolidation is the only option which appeals to investors. Comparing Hollande to Sarkozy, the former isn't consolidating fiscally, the VSPs were advocating, something Sarkozy promised. This clearly shows how these VSPs misunderstand how the real economy works in a liquidity trap.
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