Discussion
Read the following on a well known blog this morning:
"Until the recent Irish austerity budget the financial world talked about the risk of the P.I.G.S. (Portugal, Ireland, Greece and Spain) defaulting on their sovereign debt. Now Ireland is controlling government spending with swingeing public sector cuts they are not being talked about so much. Attention has shifted to the S.T.U.P.I.D. countries: Spain, Turkey, UK, Portugual, Italy and Dubai. These are the countries the City now fears to be at risk of sovereign default.
ZeroHedge, has created a S.T.U.P.I.D. index, which they are charting, it is a Credit Default Swap index, so bad news means the chart goes up. For the record, Guido thinks there is no chance of the U.K. defaulting because we still control our own currency, though losing our AAA credit rating and devaluing is a very real possibility. The market is pricing in the credit risk from Gordon’s economic stupidity nevertheless…"
Why isn't Japan considered to be most likely to default? I was under the impression the debt was by far the highest, even allowing for a relatively strong economy.
http://order-order.com/2010/02/08/s-t-u-p-i-d-gord...
"Until the recent Irish austerity budget the financial world talked about the risk of the P.I.G.S. (Portugal, Ireland, Greece and Spain) defaulting on their sovereign debt. Now Ireland is controlling government spending with swingeing public sector cuts they are not being talked about so much. Attention has shifted to the S.T.U.P.I.D. countries: Spain, Turkey, UK, Portugual, Italy and Dubai. These are the countries the City now fears to be at risk of sovereign default.
ZeroHedge, has created a S.T.U.P.I.D. index, which they are charting, it is a Credit Default Swap index, so bad news means the chart goes up. For the record, Guido thinks there is no chance of the U.K. defaulting because we still control our own currency, though losing our AAA credit rating and devaluing is a very real possibility. The market is pricing in the credit risk from Gordon’s economic stupidity nevertheless…"
Why isn't Japan considered to be most likely to default? I was under the impression the debt was by far the highest, even allowing for a relatively strong economy.
http://order-order.com/2010/02/08/s-t-u-p-i-d-gord...
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