[benrutter]

> The question is there is no other place for money to go.

Whenever I've heard people speculate on the US bond market losing its footing, the suggestion isn't that "Japan will be the new US" (eg) - it's that investor will spread assets across multiple places (US, Japan, EU, etc) to hedge against risk, rather than just the US.

[tick_tock_tick]

That's not an answer. Japan and the EU can't handle those flows so again there is no other place to go.

[johnnyanmac]

Even if it's hopeless, the best strategy when everything is falling is to bet evenly. Whether or not those countries can "handle it" doesn't matter.

You're not betting in winning, you're betting on minimalizing losses. Huge difference in behavior.