Thursday, July 14, 2011

Sovereign debt crisis worsens in Europe

tephen Long reported this story

STEPHEN LONG: Ireland's debt was downgraded to junk status yesterday, as the sovereign debt crisis in Europe deepens, but the big worries are Spain and Italy.

Satyajit Das is a globally renowned risk analyst, who accurately forecast the global credit crash and its causes.

He says the growing cost of funding Italy's debt is a major problem and there is now a serious risk of a catastrophic meltdown.

He spoke to me this afternoon.

SATYAJIT DAS: The position is quite serious because Italy has substantial amount of debt per capita, that is per Italian, the debt they have is second only to Greece.

But the real problem in the case of Italy is the quantum of its debt. Its debt is around $2.3 trillion. Now in comparison the Greek debt problem which has plagued the financial markets for now 15 months is only $340 billion. So the scale is very, very large.

More Here..

1 comment:

  1. The most amazing thing to me about this whole worldwide debt thing is the seeming unwillingness on the part of any major government to really tackle/fix the problem.

    Which - when you boil it all down in a big ole pot is government itself; and they know it. I
    also know if this is left to fester much longer
    when it blows; the common man and woman in this world are not going to have much time to adjust.

    Most gov'ts including EU; have had ample time and opportunity to get their spending inline with expenditures. Unable to do this; the wounds
    it creates continue to infect another limb, another organ until the body just cannot absorb
    anymore pain and it succumbs.

    The world is not far from that tipping point and I urge everyone reading this blog to prepare as best you can. It may be 5 days - 5 weeks - 5 months or 5 years; but I guarantee you
    that this is the big one martha and it is about to change the globe bigtime; because you see; the rotted flesh now outnumbers the healthy &
    when that happens - nature says; it's just a matter of time


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