I think there is a solid story to be told that Greece and Detroit are just the opening salvo in a long deleveraging story that will really suck - sort of like when you start opening a tin can , just one bit of it starts to open and the rest gets pulled....
Ghost of Igloi wrote:
Agip you are a gentleman.
I believe Greece, Puerto Rico, Chicago (addition) and China tell us something about the larger markets. I just cannot reconcile easy money and rational price discovery. Each of these entities have pushed the bounds of economic theory. Who will pay the bill may I ask? I learned long ago as a sophomore accounting student that an entry is a debit or a credit.
On the other hand, there are always places going bankrupt - if it's not Greece it was Mexico or Russia or Argentina - hard to know if this will be a multistage event or just the normal pattern.