Sovereign debt Ponzi
FT Alphaville posted a chart detailing the issuance of AAA rated bonds (unfortunately it ends in 2009, not 2011). I’m just trying to do my part; getting it in front of 4 more eyes. It is profoundly disturbing:
Does anyone really think all that sovereign debt is truly “risk free”?? And yet, it’s being held in money market accounts and wherever else as a “risk free” asset. Oh dear. This will not end well. I mean, does a future financial crisis get any more definite than that?