Saturday, April 14, 2012

SOVEREIGN BUBBLE IS HERE - IGNORED AS WAS THE HOUSING BUBBLE: Bonds Gain From Stocks' Pain - Barrons.com

Bonds Gain From Stocks' Pain - Barrons.com


Comparisons with the housing bubble and the sovereign debt bubble (US included) would seem appropriate.

In both cases the borrowers (read now 'governments') borrowed far more than they could ever pay back and the lenders (read almost everyone) kept lending them money seemingly without considering the risk.

Greece went basically belly-up but all these governments think they can keep encouraging entitlement spending, etc. without really understanding that they need to grow the private sector, which underpins the economy.

No comments:

Post a Comment