European Bankers learn geography

This chart illustrates the end of euro complacency. Investors once acted as though the euro eliminated not just currency risk but sovereign credit risk. All nations–from Greece to Germany–could borrow at the same low rates. No longer. As the financial crisis enters its fifth year, markets are again distinguishing between strong nations and weak.

It took two world wars and a sovereign debt crisis for European bankers to figure out geography. Probably an artifact of royalty when bankers took their orders from the King. We are seeing the same result evolve in the USA. Bankers are just now figuring out that we have regional economies and huge variations in voting rights. It makes all the difference.

Bankers learn slowly, keep your money away from them.