Wednesday, March 24, 2010

Top Analyst: "Developed Market Governments Are Insolvent By Any Reasonable Definition"

Dylan Grice, a top analyst for European financial giant Société Générale, writes:
Developed market governments are insolvent by any reasonable definition.

Who could have known?

Everyone, actually.

As I wrote in December 2008, "The "Central Banks' Central Bank" says Bailouts Putting Nations at Risk, as Confirmed By Higher Credit Default Swap Spreads":

The Bank for International Settlements (BIS) is often called the "central banks' central bank", as it coordinates transactions between central banks.

BIS points out in a new report that the bank rescue packages have transferred significant risks onto government balance sheets, which is reflected in the corresponding widening of sovereign credit default swaps: (more)

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