3 Chart 1 shows the spread for the euro area (red line) and the US (blue line) from January 2007 to the first week of June 2012. The spreads had been fairly stable at around five (euro area) and eight (US) basis points before August 2007. After the crisis erupted, two “regime shifts” could be seen for both the euro area and the US.
Of course I’m not giving investment tips; I’m a central banker. And to be honest, I invest my money in a similar way to most Germans. In Germany, some economists are already warning about the economy overheating – and in many other countries in the euro area, the recovery is now evident.