Something to think about
While the summer markets are thin as many participants take time off, the past week should remind us that there is an inevitable global sovereign debt crisis brewing(stocks, bonds and the $ sold off at the same time). Japan’s, most of Europe’s and the US’ public balance sheets are in such dire straits that we appear to have moved past the point of return mathematically. If you think I sound too alarmist here, I urge you to watch the following 6 minute infographic on Japan’s public debt (disaster). If any of you can find a rational and benevolent way out of this, please let me know. Public balance sheets are like credit card balances. Nobody thinks there is a problem until that one swipe(debt auction) that is denied/fails and changes everything.