Der Spiegel has an excellent graphics feature on the global debt crisis. The sovereign debt situation among the developed economies is truly staggering. It is now clear that the past two decades of the Great Moderation, was atleast partially, driven by a spectacular build up of debt.
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all that debt is carried as an asset on someone's books...
one could argue, based on treasury interest rates, that the world is currently suffering from a shortage of safe assets...
Posted by: rjs | August 29, 2011 at 07:52 AM