Friday, Nov 27, 2009
The real reason the markets were spooked !
The Telegraph: Dubai is just a harbinger of things to come for sovereign debt
"The fear is that threatened default in this tiny desert kingdom is just a harginger of things to come for government debt markets as a whole. According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion."
Interest rate predictions anybody?
Posted by cheekie charlie @ 12:39 PM (765 views) Add Comment
7 Comments
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1. icarus said...
The risk of sovereign default for the major economies hasn't changed because of Dubai. Too many Telegraph articles on the same themes and their analysis is getting threadbare.
2. general congreve said...
Hang on a minute Icarus. The majority of Dubai's bad debts are owed to RBS aren't they? Surely that means our government/taxpayer is on the hook for those losses if they don't repay, increasing our own chances of default.
3. icarus said...
Yeah, but he didn't argue that. In fact he made no argument. More toxic assets held by RBS doesn't add up to an increased risk of sovereign default in the world's major economies. (Though that's not to say anything about the current level of risk one way or the other.)
4. Evil Edna said...
Harginger? Shurely shome mishtake.
5. devo said...
a little country bringing the global economy to its knees
6. fallingbuzzard said...
Come one, everyone knows that the UK is at the edge on all of this. We all know that we won't go over the edge but its the shape of things to come which is the problem. It won't be a severe sharp shock a la Iceland, (or it shouldnt be) but a long slow drain
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