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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (74172)	11/27/2010 10:47:59 PM
From: arun gera	1 Recommendation Read Replies (1) \| Respond to of 74559

You are still obsessed with "absurd government debt" argument which is not the reason for these blowups in international economies that we are seeing. Ireland did not have huge public debts at one point. And virtuous countries such as Germany will have their share of problems. The blowups are happening because of loose monetary polices that have been sending false signals to governments, companies, and individuals. The smallest and the most leveraged economies (the Evil ones, as you call them) are being hit the earliest - it is simple math - these are small economies that cannot tolerate the hot inflows and outflows of money and credit. Slowly the crises has been moving to bigger and bigger countries, just as the subprime crises ultimately moved from pure mortgage companies to diversified banks to Fannie Mae/Freddie Mac to US Government, which rescued all under one umbrella by funding the derivative contracts of AIG. >It's tough to argue that the absurd government debts and expenditures run up to pay welfare bills and government salaries and pensions had any reasonable foundation or prospect of repayment.>