The world is still laden with too much debt to sustain, so we will likely be back into deflation and de-risking before long. The following debtors in particular have yet to have their come-to-Jesus moments:
* US cities & states (muni-bonds) * Canadian and Australian homeowners (record high prices, prices too high relative to incomes and rents, absurd loan-to-value ratios). * Several European nations (Portugal, Spain, Italy, much of Eastern Europe). Actually even Greece and Ireland will have to default before long, since their bailouts were just extensions and added to their debt.
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The world is still laden with too much debt to sustain, so we will likely be back into deflation and de-risking before long. The following debtors in particular have yet to have their come-to-Jesus moments:
* US cities & states (muni-bonds)
* Canadian and Australian homeowners (record high prices, prices too high relative to incomes and rents, absurd loan-to-value ratios).
* Several European nations (Portugal, Spain, Italy, much of Eastern Europe). Actually even Greece and Ireland will have to default before long, since their bailouts were just extensions and added to their debt.
From http://sovereignspeculator.com/2011/04/03/inflation-deflation-the-dollar-where-do-we-stand/
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