NEXT CRISIS

German Bond Sale Called ‘Disastrous’

Worries that debt crisis will reach euro zone’s largest economy.

Economists worried Wednesday that a “disastrous” German bond sale could mean that country would be the next to tumble in the euro-zone debt crisis. The implications of a threat to the German economy—the euro zone’s largest—have many wondering if the euro zone in its current form could survive the mushrooming debt crisis. “It is a complete and utter disaster,” said economist Marc Ostwald. The German treasury could only sell about two thirds of the $8.1 billion in 10-year bonds, and the new bond promised to pay out a 2 percent interest rate—the lowest ever on an issue of 10-year German bonds. Wall Street closed down before the Thanksgiving holiday on not only the news out of Germany, but also that Belgium is leaning heavily on France to pay off its debts and worries over Chinese factories.