On Wednesday, we presented a macro discussion about the dislocation in the Italian bond market. We went on to discuss our interpretation of how it is a natural result of ECB's market intervention. Now that QE is losing its effectiveness, the peripheral European economies starting to wobble. This is sure to have an effect on the European economy at large. One of the issues we raised was the push/pull between contagion, European problems migrating the US and Asia, and flight to safety/quality, investors fleeing Europe for better pastures.
