The scourges of Wall Street, the slayers of Sovereign Debt, the root of the
Financial Crisis! No, we're not talking about robber barons or Wall Street
bankers, we're talking Credit Default Swaps (CDS). CDS have come under
fire by the European Comission, the fist of the European Union. CDS are
being blamed for the current Greek debt calamaty. The Greek Prime
Minister, George Papandreou, pitched his gripe against CDS to the European
Commission. He says that CDS have pushed up borrowing costs for his
country, who's massive budget deficits are coming back to haunt it.
Now for some opinion on the matter. It is not the European Unions business
to interfere in contract between private individuals. I hope the European
Union will implement the proposed all out ban on CDS so that investors will
come to American and contract freely with each other. Furthermore, I am
perplexed as to why banning CDS seems to be a viable option to what seems
to be a much larger problem. The real problem here is not Credit Default
Swaps, it's the Greek government's spending. If Greece had kept a balanced
budget they would not have to come running to the Mommy-State when the big
mean investors come knocking at their door looking to collect.
Written by Stephen Balaban
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2 comments:
I have a web site where I give advise on penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I would like to comment about double digit inflation. I am very disturbed by the lack of progress on cutting the budget deficit. It will require large tax increases and budget cuts to bring the deficit under control. When nobody will buy the debt obligations of the united states than the buyer of last resort will emerge and who might be that buyer of last resort’ the government itself. in other words the massive money printing will have begun welcome weimar republic two thousand ? The united states could soon find itself in a similar situation as the greek situation
today
This whole eoro thing just goes on and on' their does not seem to be an end in sight. Their have been attempts to resolve the debt issues but none of them are working.
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