These are all from today’s headlines:
- Ireland told: Take EU bailout or trigger crisis – The Guardian
- Euro under siege as now Portugal hits panic button – Montreal Gazette
- Greek deficit much bigger than estimate – The Guardian
Thirty years ago, we had the savings and loan crisis. Those were the good old days, when investors were only nervous about small banks.
Investors have since become nervous about big banks, then non-bank financial institutions, and now small countries — Greece, Portugal, Ireland . . .
That’s the problem with debt — bad things happen when your investors get nervous.
What’s next? Medium-sized countries, obviously — Italy, Britain — and eventually the biggest of the big: the United States.