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Brain -> Morgan Stanley Says Government Defaults Inevitable – Bloomberg (8/29/2010 11:18:15 PM)
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What a mess!
I guess Americans are gullible, and lazy. They want to just drink beer and let somebody tell them what to think, especially when that somebody also keeps telling them that America is the greatest country etc...
Morgan Stanley Says Government Defaults Inevitable – Bloomberg
Investors face defaults on government bonds given the burden of aging populations and the difficulty of increasing tax revenue, according to a Morgan Stanley executive director.
“Governments will impose a loss on some of their stakeholders,” Arnaud Mares in the firm’s London office wrote in a research report today. “The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over,” he wrote.
Rather than miss principal and interest payments, governments may choose a “soft” default in which they pay back debts with devalued currencies resulting from faster inflation or force creditors to take lower returns, Mares said in an interview.
http://www.bloomberg.com/news/2010-08-25/morgan-stanley-says-government-bond-default-is-question-of-how-not-if-.html
Borrowing costs for so-called peripheral euro-region nations from Greece to Ireland surged today, resuming their ascent on concern that governments won’t be able to cut their budget deficits. Photographer: Kostas Tsironis/Bloomberg
[image]local://upfiles/392475/539D83707884490ABD3DFD1E66BAA414.jpg[/image]
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