Global debt crisis still getting worse and sovereign bond crisis inevitable

Posted on 05 July 2013 with 2 comments from readers

Predictions about the long term demise of sovereign bond markets are nothing new but the situation is getting worse not better. Gold at present prices is an amazing buy. But beware of loading up on debt now.

A debt crisis has come out of nowhere and tailing through austerity measures, the budgeted balanced debt crisis which have consider the unanimous approach to fight out the financial meltdown since 2008, which has made it blur for experts to understand the relationship between the private debt and the financial instability, have a peek here to see how corporate borrowings are turning out to be bad havens for banks to be lending and in turn are making the  recovery process to get back the amount lent to corporate a tough task, yet the government claiming that all is well, raises a lot of ambiguity in the functioning of the government in not highlighting such issues.

The difficulty of adding up to the entire corporate spending and the lending , in uncertain times of doing business , the Brexit have all contributed to the larger cause of instability and trust being eroded for future debts which big banks are thinking twice to lend and raise the private debts to a large extent. With all the turmoil the position of lending banks, institutions to adopt austerity is a tough call, as there is always a set of opposition to austerity measures proposed by the government and economist are told to be hired to bring their point against it and floor the entire measure considered to be adopted.

/measures and tolls to forecast such improbable private debt surmounting are again just tools which can be twisted around to make the matters look better than what they are at the present state, politicized and diluted in before even being brought to the notice of the common people to implement measures to take an approach towards the bonds being going down southwards in terms of their pricing and their future seems to be all in the hands of the economy to rise up and rebound to marginally cover the returns on the huge bond investments which have not been having a great journey in the recent past. The credit ratings given by banks are again based on historical data which are just numbers to be tweaked in a manner which is most suited for the experts to table it.

Tyche Group’s Martin Hennecke discusses Federal Reserve monetary policy and bank credit ratings on Bloomberg Television’s ‘Asia Edge’…