The world's third largest bond market, Italy, is in a tailspin. Yields on Italy 10 year debt is twice that of Brazilian sovereign bonds. Japanese bonds, the second largest bond market, has near zero yield. Investors are better off borrowing from Japanese banks and buying Australian local currency bonds. Lastly, the U.S., the world's largest and safest bond market, pays under 2% and was recently downgraded. Their two warring political parties forget what team they play for -- Team USA -- and can't agree how to save the Titanic from that big block of ice floating in the North Atlantic.
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