Thursday, April 29, 2010

Canary in the Mineshaft

Nouriel Roubini in an article over at Bloomberg is stating the obvious: Rising Sovereign Debt Leads to Default.  I greatly respect Roubini and agreed with him when he forecast the crash back in August of 2006, and he is right again here.  We can't keep spending and adding obligations to our balance sheet...period.  There are several exhibits of what happens when you do this:

1. Weimar Germany in the 1933.
2. Argentina in 1999.
3. Greece in 2010.
4. Spain in 2010.
5. Portugal in 2010.
6. Ireland in 2011.
7. Japan in 2012.
8. USA in ??

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