Here is a pretty good article on the rising debt countries are racking up which will eventually lead to sovereign defaults. I don’t quite agree with the use of the term “bond vigilantes” in regards to investor which are no longer supporting these collapsing countries. It makes it sound like investors are the ones responsible for the drowning economy when it’s the poor management of their countries finances which are ultimately to blame. Nonetheless, this is definitely worth your time. (PHOTO: Jonathan Alcorn, Bloomberg)
Nouriel Roubini, the New York University professor who forecast the U.S. recession more than a year before it began, said sovereign debt from the U.S. to Japan and Greece will lead to higher inflation or government defaults.
Almost $1 trillion of worldwide equity value was erased April 27 on concern that debt will spur defaults, derailing the global economy, data compiled by Bloomberg show. German Chancellor Angela Merkel and the International Monetary Fund pledged to step up efforts to overcome the Greek fiscal crisis, after bonds and stocks fell across Europe in the past week.
– Vivien Lou Chen, Bloomberg
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