Sudden Debt

Suspension Of Debtbelief

2010/04/16
By Hellasious
Suspension Of Debtbelief

I have been a close observer of the Greek Debt Crisis for quite some time now.  What strikes me most is the absurdity of calling for additional debt as a solution.  It's not enough that Greece already has a government debt rapidly approaching 120% of GDP and cannot realistically fund itself through the markets,...
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Crossroad Signs

2010/04/12
By Hellasious
Crossroad Signs

We are, as usual, at a financial crossroads and the signs to guide us to the proper route are, also as usual, smeared with graffiti and conflicting directions.  But in this instance the crossroads are significantly more important than at other times;  it's a bit like equality amongst Orwellian animals.  Decisions made in times...
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The Great Debt Bailout

2010/04/09
By Hellasious
The Great Debt Bailout

This blog was created in late 2006 in order to "vent" my frustration over the huge debt bubble and what I  perceived to be the risks it posed to the global economy.  In summary, I claimed that the economy had become hooked on debt to create additional GDP growth - or "growth" in quotation...
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Do Easter Bunnies Lay Eggs?

2010/03/30
By Hellasious
Do Easter Bunnies Lay Eggs?

Commenting on a previous post Debra, a devoted (smile) reader, had this to say:

It would seem that man is a gambling animal that JUST HAS TO HAVE HIS DOSE (fix ?) OF RISK, (like he has to have his dose of arguing about the number of angels on the head...
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Say Hello To Theo Bawki

2010/03/27
By Hellasious
Say Hello To Theo Bawki

Theo Bawki is not a friend from South Africa.  Rather, it's Sudden Debt shorthand for The End Of Banking As We Know It.  And if the Volcker Rule passes Congress without a bunch of customized  loopholes and exceptions, that's exactly what is going to happen. Thankfully.

As preamble, let me take you back...
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Perception Creates Reality

2010/03/25
By Hellasious
Perception Creates Reality

A reader commenting on the previous post on CDS asked: "... if two people have a bet on a football match, does that affect the result?"

This is a seemingly innocent and deceptively easy question;  but, in fact, it is very difficult.  To answer it we must touch upon the very core of...
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Wolf!!

2010/03/24
By Hellasious
Wolf!!

The discussion about Credit Default Swaps is replete with allusions, examples and (over-)simplifications.  The most frequently used is that CDS is akin to buying fire insurance on a neighbor's house and thus having every incentive to see it burn down.  

But this misses a crucial point: derivatives traders rarely, if ever, want to "take...
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Die Frau Im Lederhosen

2010/03/23
By Hellasious
Die Frau Im Lederhosen

Dear Frau Merkel,

Please stop the hysterics (*) about Greece.  You have nothing to prove, we know who wears the lederhosen in Europe.

Sincerely,
The Rest of Europe
__________________________________________________________
(*) From Wikipedia, emphasis mine:  Female hysteria was widely discussed in the medical literature of the Victorian Era.  Women considered to be suffering from it exhibited...
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One of The Dollar’s Multiverses: Insufferable Indifference

2010/03/22
By Hellasious
One of The Dollar’s Multiverses: Insufferable Indifference

Love it or hate it, the U.S. dollar is still the world's premier reserve currency. The primary reason is that the United States (5% of the world's population) accounts for 20% of global GDP.  Or, you could turn the argument around and say that, being the issuer of the global reserve currency,  the U.S....
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A Shameless Plug For Ancient History

2010/03/19
By Hellasious
A Shameless Plug For Ancient History

Readers may be wondering why I have devoted several posts on the "Greek Crisis".  Apart from newsworthiness - the subject is everywhere, it seems - there is another, less topical reason that goes back thousands of years. Literally.A couple of week...
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