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Monday, 3 January 2011

Battles loom between creditors and borrowers


20:20 |

FT.com / Comment - Battles loom between creditors and borrowers: "few weeks ago, a large US investment bank asked a discreet question of its biggest institutional investor clients. How long would it be before the debt crisis that has struck Europe reached the US? One, two or three years, or never? “Under 10 per cent said never,” says a banker involved in the polling.

Last year brought the eurozone debt crisis. Greece and Ireland had to be bailed out and big question marks still hang over Portugal and Spain. But the focus is now likely to widen. The question for 2011 is how much of the western world could be caught up.



“It is definitely looking more systemic,” says Kenneth Rogoff, a Harvard professor who was formerly chief economist at the International Monetary Fund. “Whenever there is a wave of banking crises, a wave of sovereign debt crises follows a few years la"

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