Global Market Forecast: Sovereign Debt Review
Global Market Forecast: United States Economy & Stock Market
Global Market Forecast: Conclusion
We’ll begin with the current poster child of sovereign debt destruction, Greece, and then work our way out.
These means that Portugal is going to see massive deleveraging (paying down debt) from the banks, corporations, citizens, and the government. Every portion of the economy is going to be shrinking.
The world has borrowed far more money than it can pay back. This first occurred in the private sector from 1971 to 2008, and the baton has since been passed to the public (government) sector since the credit bubble burst in 2008.
h/t John Mauldin, Zero Hedge