Sovereign debt bubble thread

[Jacob]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

[Neil]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

How could they?  Latin America can't lead the world.  We'll all just have to get used to having less.  Our children will envy us, and the world bill descend into a permanent poverty, which will continue through to the eventual extinction of the species.

[Iormlund]

OK, how could Germany have allayed investor doubt without exposing itself to catastrophic liability?

It would have been cheaper even to bail out Greece, killing any uncertainty in the markets, than any half measure Merkel is bound to take now. And certainly much cheaper than the global recession we're about to experience.

[Neil]

OK, how could Germany have allayed investor doubt without exposing itself to catastrophic liability?

It would have been cheaper even to bail out Greece, killing any uncertainty in the markets, than any half measure Merkel is bound to take now. And certainly much cheaper than the global recession we're about to experience.

Would the uncertainty around Spain and Italy still exist?  After all, those countries will never be able to put their house in order.

[Ideologue]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

America will eventually get better.  Even if everything else failed, we could always enslave the entire planet.

[Neil]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

America will eventually get better.  Even if everything else failed, we could always enslave the entire planet.

You guys don't have the courage, nor the work ethic, nor the superior morality.

[KRonn]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

How could they?  Latin America can't lead the world.  We'll all just have to get used to having less.  Our children will envy us, and the world bill descend into a permanent poverty, which will continue through to the eventual extinction of the species.

We're doomed....   

[Admiral Yi]

It would have been cheaper even to bail out Greece, killing any uncertainty in the markets, than any half measure Merkel is bound to take now. And certainly much cheaper than the global recession we're about to experience.

Possibly, if you assume that everyone elses' problems are solely a function of "contagion" and have nothing to do with fundamentals.

You're also overlooking the moral hazard.  If lenders know that Germany is going to pick up the tab in case of default they'll keep on lending to deadbeats, and deadbeats will keep on borrowing.

[Grallon]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

Troy will burn is what will happen. 





G.

[Admiral Yi]

So how fucked is the world?

The Euro's collapsing on itself, the Chinese bubble is set to deflate and the US is not righting itself either... what's going to happen? Will the Brazillians take over?

Brazil is surging right now on a commodity bubble financed by the Chinese.  If Chinese demand goes so does Brazil.

[Jacob]

America will eventually get better.

What's the source of your certainty?

[Jacob]

Troy will burn is what will happen. 

I'm not overly concerned about a pile of ruins in Asia Minor, nor about a number of small towns in the US named by classics enthusiasts.

[Admiral Yi]

What's the source of your certainty?

Always has before.

[Jacob]

Brazil is surging right now on a commodity bubble financed by the Chinese.  If Chinese demand goes so does Brazil.

Yeah, I didn't figure Brazil would be able to do it on their own. In a similar vein, Canada, Australia and Russia (not to mention various African economies) are probably set for hard times should the Chinese start deflating.

So is that the prognosis right now? We're looking at global stagnation for the foreseeable future?

[Jacob]

Always has before.

So you share Ide's certainty? What would you say are the unchanged fundamentals that are the source of the US being able to pick itself up again? What are the biggest question marks, in your opinion?

It looks to me that there are some structural issues that it would be good to address, and the political climate seems fairly dysfunctional at present. But perhaps it's no worse than it's been at other times?

I mean, I hope you guys are right since that certainly is better for Canada and me personally.