Sooner or later it all comes out in the wash

On Wednesday, I had an opportunity to present a webinar to discuss my current views about the euro. One of the key PowerPoint pages summarized reasons for my continued concern about the euro, includes the comment that the market has still not priced in the risk of breakup, i.e. bond yields relative to Germany are still too low for the countries facing huge debt problems, that will either be worked off/restructured/defaulted upon.