Wednesday, February 9, 2011
What happens when everyone borrows and can’t repay
"A leading investor said: â€œPortuguese debt costs are in danger of rising further and further as there are no buyers of the countryâ€™s debt.â€ The ECB has been the biggest buyer recently. "Portugalâ€™s cost of borrowing hit a euro-era high on Wednesday amid growing concerns that Lisbon will have to turn to bail-out funds to revive its stagnating economy". Never mind - the banks will soon be lending out more cash to prop up the UK housing market.