July 28 | The Lead Indicator

Europe’s Newest Agreement No Panacea | Europe's newest plan to stave off a broader debt crisis may not be scaleable and flexible enough to offset the vagaries of bond investor sentiment, Sam Chandan offers in his assessing the latest developments on the Continent. The possibility of a Eurobond may address the crisis in a more robust manner, but will also add to upward pressure on Treasury yields in the United States:

"the long-term result of the sophomoric approach to debt and deficit politics in the US and the potential for a new class of sovereign bonds to emerge in Europe means that higher underlying costs of financing—in terms of treasuries and any instrument measured over them—will ultimately prove to be among the legacies of this crisis."

Read Dr Chandan’s analysis in the New York Observer column, Europe’s Newest Agreement No Panacea.