European Debt Crisis Explained

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The European debt crisis explained: The debt levels around the globe are unprecedented in peacetime.

The odds of restructurings and/or defaults are higher than most believe. When does debt become unsustainable?

The video shows the debt levels of numerous countries have reached "problem" levels. Since the bill coming due in the form of maturing bonds is so large, policymakers in Europe have no easy way out.

"Solutions" may include printing money to create inflation or debt restructurings/defaults; or a combination of the two.

Chris Ciovacco of Ciovacco Capital Management compares healthy markets to the current state of affairs. Which investments tend to perform well during deflation/defaults/restructurings? Which investments tend to perform well during periods of inflation/money printing by central banks? What is a back-door bazooka?

Studies by Kyle Bass

 

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• The Broke Bailing Out The Bankrupt (economicnoise.com)
• Scott Burns: Debt rising, inflation inevitable? (seattletimes.nwsource.com)
• Greek restructuring deal triggers mini debt default (macleans.ca)
• Greece green lights €206bn debt swap (newstatesman.com)
• There Will Be Contagion (ritholtz.com)
• TIPS Show An Indecisive Market (wallstreetpit.com)
• The Mainstream Media Still Doesn't Get the ECB Greek Debt Swap (zerohedge.com)
• Greece Has Defaulted - Which Country In Europe Is Next? (zionistoutrage.com)
• MAULDIN: There Will Be Contagion... (businessinsider.com)
• Is This The End Of Yesterday? (isellerfinance.wordpress.com)

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