Morgan Stanley Says Government Defaults Inevitable

Governments DO NOT default, they RESCHEDULE and declare that a solution and problem solved. Of course that is BS but it takes awhile for market to figure it out.

Jim

Jim,

Absolutely, they will. Reschedule is fancy word for hiding the debasement of bonds already issued. The public, too swoon by non-reality reality shows, will soon find out why one of the better reality shows known as capitalism quietly calls sovereign debt certificates of confiscation.

Eric

“Governments will impose a loss on some of their stakeholders,” Arnaud Mares in the firm’s London office wrote in a research report today. “The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over,” he wrote.

Source: bloomberg.com