Gavekal On When PIIGS Fly

European Central Bank (ECB) president Mario Draghi’s recent comment that the ECB is ‘comfortable with acting’ in June if necessary to combat deflation, and his numerous promises to do whatever is necessary to keep the eurozone intact has driven bond yields down for the eurozone periphery. But even with his guarantee, Draghi would need to drum up political support for another round of bailouts, and according to Evergreen Capital Management/ Gavekal CIO David Hay current yields simply don’t reflect the actual level of risk that investors are facing. “It wasn’t in the distant past, but rather just a couple of…