Friday, April 16, 2010

ECB: Sovereign Debt Crisis Coming Up; U.S. Included

WSJ reports on what is becoming a very obvious concern:
The European Central Bank widened its focus beyond Greece, warning that major economies such as the U.S. and Japan which recently emerged from a severe financial crisis already face a new one in government debt markets.

"We may already have entered into the next phase of the crisis: a sovereign-debt crisis following on the financial and economic crisis," ECB executive board member J├╝rgen Stark, from Germany, said Thursday.
It's really hard to see how this doesn't end without huge monetization of state and local debt, here in the United States.

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