4 posts tagged with financialcrisis by storybored.
Displaying 1 through 4 of 4.
"GOVERNMENT debt dynamics, once an esoteric subject of interest only to macroeconomists, are suddenly in vogue. With Greece flirting with default, Italy's bond yields rising fast, and America's government bonds losing their AAA status, public-debt burdens have become dinner-party talk. Our interactive chart shows current IMF forecasts but also allows you to input some basic economic assumptions to see where general government debt as a percentage of GDP might head."
Sovereign debt issued by governments is immense. In 2009, worldwide sovereign debt exceeded $34 trillion and is now the largest risk to the global financial system. Many of the potential problems and risks are surprising, even to those well-versed in their particular area of finance. What happens if Things Go Really Bad? ...out of the multitude of potential scenarios, I have settled upon one which is really bad, but doesn’t involve asteroids, mass extinctions, or apes taking over. It is consistent with prior bad episodes of sovereign debt default. Here is the Really Bad scenario. It’s not a worst possible scenario. It is more like the Long Depression or the Great Depression reoccurring under 2010 conditions. In the Really Bad scenario, 45% of the countries with large outstanding sovereign debts are in default within a 2-3 year period." A five-part article series on the imminent dangers of sovereign default from a guest columnist at Calculated Risk blog. Some of this strays into finance ubernerd territory but Part 5C in particular is the likely the playbook for the next financial crisis. [more inside]
Six Simple Ways to Fix Wall Street. "Elements of our Six Simple Steps are in the pending legislation. If they're part of what's adopted, we may get true and lasting reform. If they're not, it won't be long before Wall Street is back to business -- and bailouts -- as usual."