Bond Market Calls the Shots in Europe - Barrons.com
The same is true in the United States - much to the less-than-realistic imagination of the socialist types like Obama and the public employee unions - all of whom somehow believe that if you 'wish for an outcome', then eventually, that's what will happen.
Even if history shows that not to be the case - witness union-centric socialist economic policies collapsing the economies of Greece, etc. And, as with GM, once the equity is gone, someone has to step in to revive what has been depleted.
When everyone keeps wanting to borrow (crowding-out by sovereigns noted) and no one wants to save (i.e. a negative real return), then something has to give.
Either savers need to be paid more or borrowers have to borrow less or start paying back.
Which way will the winds blow?
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