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mk · 3585 days ago · link · · parent · post: Matthew Yglesias: Something economists thought was impossible is happening in Europe
Yeah, the title says impossible, but the article gives a reasonable explanation of how it becomes possible, even without arbitrage (for the long-term Swiss ones): supply is greater than demand. If people want shelter, and there isn't enough shelter to go around, they'll risk a loss for it. Still, one could just hold their money in Euros, but maybe Euros will tank and the hope is that in such a scenario the bonds will be honored in the new currency? Odds on war in Europe?