Debt Facade Cracking in U.K. as Sovereign Contagion Spreads
June 11, 2010 at 08:28 AM EDT
When Greece’s markets first started cracking wide open, a lot of claptrap spewed forth from Wall Street. The general consensus: • The problems in Athens would stay bottled up in Athens. • They would remain “contained.” • They didn’t mean anything for larger economies, including the rest of Europe, the U.K., or the U.S. Me? I told you the exact opposite … I said the implosion in Greece’s stock and interest rate markets — stemming from concerns about that country’s massive debt and deficit problems — were a huge red flag. They foretold a collapse in other sovereign debt markets, with collateral damage in currencies and equities.…