Speaking on the fringes of a start-of-year retreat of her Christian Union lawmakers in the city of Kiel, Ms Merkel said she would consider calls from her party colleagues for legislation to bar institutional investors such as insurance companies from selling bonds when ratings were downgraded, or fell below investment grade.Imagine you are an insurance company holding sovereign debt and you read that you will not be able to sell these bonds if there's trouble. You can drink the hopium and hope the government bails the firm out, and chase it with the Kool-aid and hope that the bailout is not in a severely depreciated currency. Or, you can look at the risks, consider your fiduciary responsibility to customers, and dump the bonds ahead of a legal change. H/T ZeroHedge.
Easter Eggs (1 of 21): Hot Air
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FEEDPreface to all 21 parts: This is a special holiday weekend, because not
only does it contain Good Friday and Easter, but it also begins the Slope
of Ho...
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