Thank you for sharing!

Your article was successfully shared with the contacts you provided.

It is not clear how much longer the volatility will continue in the bond markets. Recently it has been high, and has made it very hard for lenders to know exactly how to price the risk. While some lenders have tried to just select a rate vs a spread, this is still risky in that nobody can be sure where index rates will settle out. Likely they will not rise much for quite awhile, but until Europe is resolved well, there is a high risk that volatility could remain high. Maybe this week Merkel and Sarkozy will finally understand that they are playing with a dangerous game of kick the can as they have been for the past two years. There is still a total lack of any leadership in Europe, and things are still just muddle along with no political or monetary structure that is really effective. Having seventeen disparate countries try to agree on anything is a challenge. To have them agree on all of the issues of defaulting Greece, how to stabilize Italy, how to stabilize a very disparate set of banks in all of the affected countries,  and how much each country needs to contribute of its taxpayers money to support the entitled, lazy Greeks and the dysfunctional Italians. Is a massively complex problem which is inherent in the unworkable EU rules. The Euro Zone worked when everything was going well and there was no apparent stress on the system of socialist programs which supported not working in Greece, Italy and Spain. Now that reality has struck and there is no longer the ability to continue these massively unproductive programs, there needs to be a genuine reordering of the underlying rules of the Euro.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.