Investors hoping to avoid the turmoil of the euro crisis have been pouring their money into German bunds and assets, expecting nothing but a safe place to store their money. And with German economic data continuing to come in strong, these have seemed like safe assets.
But are they, really?
Carmel Asset Management's Jonathan Carmel gave this massive presentation on German exposure to the potential outcomes of the eurozone crisis, and concluded that "Germany is riskier than you think."
Since the beginning of the European Monetary Union, German banks and the government have been expanding their exposure to peripheral Europe. No matter what how the crisis ends—fiscal union or euro break-up—dealing with the consequences is likely to be expensive for Germany.Click here to find out why Germany will probably lose no matter what >