I will post charts later, but it appears that the only thing BURNnake feared the most may be occuring…the unwind of public trading and banking leverage is so great that even the lowest risk assets, namely US treasuries are being liquidated to cover obligations…its even worse in Germany as the 10 years over there is under performing even more. This makes it clear, that at some point soon, whether BURNank and DRUGhi like it, liquidations will necessitate higher interest rates which will facilitate more liquidations...
