Can You Spot The Difference?

Oh yes, there is a difference of around 15 percentage points between the cost of insuring bonds against default in the countries they are respectively responsible for. But then, even in the more favoured case investors are demanding a premium which amounts to an astonishing 31 percent of the amount of debt protected.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

2 thoughts on “Can You Spot The Difference?

  1. Sorry, if some financial genius buys government bonds (supposed to be the safest possible money saving vehicle), and spends a fortune to insure the investment at, say, AIG, he needs mental help.

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