To Rival Silicon Valley?

Good luck with that. Honest. It’s great that big industry finally wants to pump some money into Berlin again but keep your pants on already, Siemens.

Siemensstadt

The German engineering giant has unveiled plans to build a huge innovation campus in Berlin, harking back to its early days in the German capital and aiming to rival Silicon Valley in the United States.

Investment in a new campus to be called Siemensstadt 2.0 (Siemens City 2.0) will come in at €600 million ($680 million) on offices and residential accommodation, as well as laboratories and production plants, according to an agreement signed by Berlin Mayor Michael Müller and Siemens executive member Cedrik Neike on Wednesday.

The plan is to transform the historic Siemens site in Berlin-Spandau into a location for research and startup centers by 2030.

Der Weltkonzern baut in Berlin für 600 Millionen Euro seinen Zukunfts-Campus. Mit 2000 Wohnungen, Forschungslabors, Geschäften, Schulen und eigenem S-Bahn-Anschluss

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Talk About Crossing A Red Line

Somebody call the President or something.

Red Line

I’m gonna buy a mess of these. But like what will be my German Bund’s 10-year yield at -0.030 percent? I mean, will there still be any of my investment left?

“Nobody buys bunds at these yield levels thinking they are attractive. Demand for haven assets is being driven by fear of Brexit and growth concern. Investors are buying bunds as a hedge against uncertainty.”

Ultra-Safe German Government Debt?

It’s good to be the king. Isn’t it?

King

More than half of all German government debt with more than one year maturity is now trading negative.

Investors have been warned of dangers of holding German government debt, as unprecedented central bank easing sends the country’s 10-year borrowing costs towards zero.

“If you look at bunds in anything other than the shortest possible timescale, the risk becomes very clear.”

It’s Good To Be The German

In case you didn’t know it, Germans are sitting on a big honking tremendous pile of money.

The Bundesbank thinks that German private households are in posession of ein paar tausend Milliarden or “a few thousand billion” euros (stick with that, believe me: Billion is Milliarde in German, trillion is Billion). They’ve got more set aside now then ever before, in other words; some 4.7 trillion euros.

And the punch line is that they seem to have invested most of it at those awful horrible dreadful banks they like to despise so much (they make big banks even bigger, you might say). Investments in real estate haven’t even been calculated here, by the way. Rereading this is starting to make my stomach hurt.

Privatleute vertrauen Vermögen den Banken an.