A major sovereign debt crisis brewing?
The drama of the PIIGS’ debt crisis continues to unfold, as some say it foreshadows what will happen to the US eventually. History is replete with countries that experienced economic crises which turned into fiscal crises. It appears that we may be in the beginning stages of this cycle.
Check out the great post from bearishnews.com on this subject.
If the all of the fiscal stimulus and massive deficits has spawned its own crisis (which could be even worse than the financial crisis), does this render all of the stimulus worthless (assuming you even thought it was a good idea to begin with)? Have we simply turned a financial crisis into an even greater fiscal crisis? Share your thoughts in the comments.