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The world rocked by Euro$ collateral; Italy, Eurobonds, maybe the '22 equivalent of "toxic waste."

Eurodollar University

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What Happened to US Treasuries?

Everybody that could bought US Treasuries, particularly Treasury bills, which is why bill rates stayed so low during the financial crisis. Of course, that proved to be a mistake because for various reasons, not just subprime mortgages, but also prime mortgage bonds, they got to be revalued. Those who didn't have alternatives were forced into fire sales, which nobody wants to do. In Europe, a lot of people had turned to sovereign bonds because of course they did, but not all sovereign bonds are created equal as we began to find out late in 2009 into 2010.

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