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REPORT COPYRIGHT VIOLATION IN REPLY
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Message Subject
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Yield on Spain bond yield hits highest-ever 7%!!! ECB Has Considered Cutting Deposit Rate to Zero!!!
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Poster Handle
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Anonymous Coward |
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Post Content
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7% will drain ALL of the cash-flow from these countries.
Spain will default very shortly if they can't get bond prices down.
Same in the U.S. if our bond rates go to 6% we'll be unable to meet cash flow due to all the short term funding we'll be rolling over.
That is, 6% on our bonds eats up ALL available incoming cash on payments.
Quoting: Fingulas Won't happen in the U.S. for a variety of reasons: 1) Dollar is still the world's reserve currency and will be for the foreseeable future. When the SHTF investors and others always look to the U.S., for obvious reasons. 2) The U.S. can still manage it's debt, as long as it starts to seriously bring down public spending. Japan, Italy, etc. have very, very serious debt issues. Spain will be able to get out of the situation, but it's going to be painful and their unemployment rate is off the charts. Ireland SHOULDN'T HAVE BAILED OUT THE BIG BANKS AND FINANCIAL INSTITUTIONS, but too late. Ireland will be able to handle it's public debt, and it actually demographically has a lot going for it, but it's private debt is off the charts. People were living high off the hog on money they didn't have for a long time. Likewise, Portugal will make it, but Greece? I don't know. They're in a life and death struggle.
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