Nouriel Roubini: 'Risky Rich' Countries Are In Greater Danger Of Defaulting On Debt

The Risky Rich:

...in large part and with a few exceptions in Central and Eastern Europe -- emerging-market economies improved their fiscal performance by reducing overall deficits, running large primary surpluses, lowering their stock of public debt-to-GDP ratios, and reducing the currency and maturity mismatches in their public debt. As a result, sovereign risk today is a greater problem in advanced economies than in most emerging-market economies.

Read the whole story: The Risky Rich

Comments

[deminmo]

04:33 PM on 01/21/2010

Big problem is making more money with nothing
backing it up! Commodity bubble to burst.

[LunaPark]

01:51 AM on 01/21/2010

Wow, Roubini sounds like he is reading Von Mises or Rothbard.

[RoloTomassi]

11:32 PM on 01/20/2010

I fear that Roubini's more dire prognostications are a requirement, if we are to ever lose our national delusion; politically we are totally dysfunctional and corporate-owned, with the 1% running the show--and NO ONE in in that small onclave or in DC is willing to face the facts.

WE MUST HAVE European-style social programs, and we must up the taxes to pay for it; and those who have robbed, cheated and squeezed every last drop of wealth from the lower 99.5% of the economy must be forced to pay a greater than average share of their wealth toward the common good.

Such is the only sane set of actions that could save us; if we continue on the current downward spiral, even the poor GOP standard bearers will eventually see that SOCIAL UNREST will lead to CHAOS which will lead to REVOLUTION.

The true entitlement mentality lies in those who decribe themselves as "conservative," and who wish to continue the sad American tradition of "every man for himself"; an ignorant and defiant continuation of such policies will eventually bring about the failure of this nation--or the very violent rebirth of it.

[jrutle]

02:03 AM on 01/21/2010

Good post. It may take years or decades for America to become a social democracy in the European mold, but I believe it will come. We are well on our way towards a major economic collapse based on the preeminence of the financial sector of our economy and the decline of our productive sector. As income and wealth becomes more polarized and the standard of living of the middle and lower working classes in our country continues to decline more Americans will come to recognize the class warfare that has been committed against them by a financial elite. With that, will come populist rebellions, which we are already starting to see by the teapartiers. Progressives will be next.

[RoloTomassi]

08:50 AM on 01/21/2010

Indeed; perhaps the time hasn't quite arrived yet, but soon progressives will realize that the only sound alternative is to break once and for all with the corporatist democrats.

A 25 - 30% immovable progressive political block can change the face of this nation forever; we will eventually have to bite the bullet and begin the hard work to make that pipedream a reality.

[DASChicago]

11:21 PM on 01/20/2010

For every $$ in no-bid contracts, tax breaks stolen and given to the Rich-Rich, every subsidy given in excess of worth for the thieves on Wallet-Street and banksters, the missing $2 trillion the pentagon misappropriated, every fatcat and business who skirted paying taxes and outsourced US based job via privatization or otherwise, and every other corrupt deal...Bush & Cheney should be held responsible for refunding.

[lboucher]

10:57 PM on 01/20/2010

Democrats seek to up debt ceiling by $1.9 trillion

Upping the ante just a day after losing their 60th Senate seat, Democrats moved Wednesday to seek a $1.9 trillion increase in the federal debt ceiling and give the Treasury adequate borrowing authority past November’s elections and into next year.

Republicans were caught off guard by the scale of the increase which follows a $290 billion short-term debt increase approved prior to Christmas. “That’s just escapism of the worst sort,” Sen. Judd Gregg (R.,N.H.) told POLITICO.

[research]

02:59 AM on 01/21/2010

The Tow truck will cost too much, we have to stop now!

[stargazer13]

08:42 PM on 01/20/2010

some thing ,s gotta give !! that,s all I know !! consumer confidence is M.I.A.