Spain steals Social Security money to prop up bonds
I’m not a big fan of bonds, I’ll be the first to admit it, they let local governments many times do start large municipal projects that never should be done and give the taxpayer sometimes a feeling of ‘lets pay it off later’.
Well , there’s alot of BAD news coming out about bond markets, which will impact EVERY SINGLE ONE OF US! As bond prices rise , local governments and even federal governments can no longer cover debts or ‘stimulate’ their economies as we’ve seen here recently.
Spain Props Up Bonds
Argentina Bond Worries
It’s not all marshmellows and gumdrops when it comes to the world economy, and by spain admitting that they’re trying to hide their risk , it means we could see another greek mess, but about 300% larger. Greece is a very small economy & country as compared to somewhere like Spain , Portugal or even Italy who recently has shown to have a TON of risk. I know that this is a site for American IOUs , but we’ll likely see IOUs being issued as the world economy declines, and we might see some government ‘backed’ IOUs go the way of personal ones, that is that they never ever get paid off.
