Saturday, May 15, 2010

The second debt storm: Who will bail out the countries that bailed out the world's corporations?

by Alistair Barr from Market Watch.
In early February, the cost of insuring against a sovereign default in Western Europe exceeded the price of similar protection against default by North American investment-grade companies. That was the first time this had happened....
It appears to me that we, the ordinary and working people of the planet, are approaching a scenario that reminds me of the old mining and timber companies in the US where everyone "owes their soul to the company store"--the latter being the world banking and financial elites. In this scenario, everyone works their entire lives to pay off the debts to the company store, but somehow always end up going deeper into debt.