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Debt Default Fears Will Spread To Us And Japan, Warns Citigroup's Willem Buiter

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8246757/Debt-default-fears-will-spread-to-US-and-Japan-warns-Citigroups-Willem-Buiter.html

Worries about the risk of a sovereign state defaulting on its debt, which thrust the eurozone into crisis, will soon encompass the two major economies as well, according to Citigroup economists led by Mr Buiter, who sat on the Bank's Monetary Policy Committee.

The team has published a note forecasting much more strife to come in the wake of Greece and Ireland's recent bail-outs and eurozone governments' borrowing costs hitting record highs.

"Despite the recent drama, we believe we have only seen the opening and second act, with the rest of the plot still evolving," the team wrote. "There is no absolutely safe sovereigns."

There are likely to be several sovereign debt restructurings in the next few years, the analysts said, with Portugal likely to need to access the emergency funding facilities soon.

Against this backdrop, the US and Japan - dubbed the "fiscal sustainability deniers" - cannot keep ignoring the question of how safe their public finances are, the team said.

Continues at the link.

I'm just relieved this problem is just globally contained, looks like our closet neighbours Mars and Venus will escape being dragged into this mess.

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kyle bass has been putting the boot into japan in the slick manner that only he can,for about a year+.his thesis being that a half point IR rise would nail em.

Nearly game over then for the Japanese if that's the case. Then imagine what would happen when the carry trade unwinds....

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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