Tag Archive for Debts

Worst Case -Shock waves will destroy the world if Greece drops euro. What’s the best case?

Bankers, governments and investors are starting to prepare for Greece to stop using the euro as its currency, a move that could spread turmoil throughout the global financial system. The worst-case scenario envisions governments defaulting on their debts, a run on European banks and a worldwide credit crunch reminiscent of the financial crisis in the…

Why merging Spain’s troubled banks won’t fix the country’s debt crisis

Bank mergers solve the debt crisis. At least that is the strongly held view in Madrid, where Spanish prime minister Mariano Rajoy is considering yet another rescue, this time involving a possible merger of Ibercaja with rivals Liberbank and Caja3. It follows a longstanding policy, established by the previous socialist administration, that smashing together almost…

Bridgewater Assoc.’s Dalio Says It’s A Beautiful Deleveraging – Barrons.com

Barron’s: You’ve called the current phase of the U.S. deleveraging experience “beautiful.” Explain that, please. Dalio: … There are three ways to deleverage. We hear a lot about austerity. In other words, pull in your belt, spend less, and reduce debt. But austerity causes less spending and, because when you spend less, somebody earns less,…