Tag Archive: default

Further Dollar Strength Could Trigger the Next Major Debt Implosion

The issue of global dent has been widely talked about for some time. Unfortunately, sometimes the damaging effects of massive debt are ignored due to a “borrow now, worry about it later” mentality. The EU has had more than its share of debt problems in recent years, with the financial crisis in Greece having had a significant impact on global financial markets. Other nations have issues as well, and Italy has once again become a primary area of focus. Italy is one of the most... Continue Reading

U.S. Crosses $20 Trillion in Debt Threshold

The United States was reportedly in debt as of Friday to the tune of $20.16 trillion. Yes-that’s trillion. To put this figure into context, well, let’s just say that you could stack $100 bills in massive piles all around the Statue of Liberty, and literally box her completely in. How did the U.S. get here you may be thinking…Well, the massive debt is a combination of things including previous tax cuts, fighting in wars and economic stimulus. Think about that for a moment. The Iraq... Continue Reading

The Counterparty Risk Problem

Investopedia defines counterparty risk as “the risk to each party of a contract that the counterparty will not live up to its contractual obligations.” Now think about that for a moment… Whether you realize it or not, you have to confront counterparty risk on a daily basis. Will the power company deliver electricity to your home? Will the city or municipality provide a clean and reliable water supply? Will your health insurer pay up in the event of a claim? While all of these issues... Continue Reading

Category |

Greece and the Moment of Truth

Imagine for a moment the feeling of sheer panic you might experience if you went to your bank and were told you cannot withdraw your own money… Unfortunately, the people of Greece are going through such a scenario right now as we speak… After a weekend in which no deal was able to be reached concerning an extension of funding for the country, Greece has now imposed capital controls and closed its banks for the next several days. Greek depositors are limited to withdrawals of... Continue Reading