This is how desperate European investors are for a safe-haven: They’re paying Germany to “borrow” money.Germany just held a 3.9 billion EUR auction of 6 month bills. The interest rate: -0.0122%.
Essentially Germany is a bank, where the depositor pays to warehouse money. If you’re worried that no other institution will stay solvent during that time, it obviously makes tremendous sense to pay Germany.
Of course, this is why Germany should be open to fiscal stimulus, as a means of growing the rest of the Eurozone, since it’s obvious to see where all the money — that used to go into things like Italian debt auctions — is rushing towards.