Morgan Stanley Says Government Defaults Inevitable
From Bloomberg via Drudge:
Investors face defaults on government bonds given the burden of aging populations and the difficulty of increasing tax revenue, according to a Morgan Stanley executive director.
“Governments will impose a loss on some of their stakeholders,” Arnaud Mares in the firm’s London office wrote in a research report today. “The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over,” he wrote...
Read the rest.
And when local and state governments start to default on their bonds, what do you think will happen with services such as police patrols?
On the other hand....