Monday, May 3, 2010

Pointer to a wonder ful article

John Mauldin published an excellent article on financial engineering in the collateralized debt offerings that were associated to the forest. It echoes the division of an income stream into the most reliable and the least reliable that I talked about from John Edmund's book , last week's thoughtful Thursday post.

He also says that many governments are having rapidly rising debt to GDP ratios. And now Japan is the only country with a two to one ratio--all of its citizen's investment is funding public debt. Other nations are likely to hit these ratios.

However, as interest this is scary, twenty percent of a nation's GDP to paying interest in the public debt. However a one to one or two-to-one share economy. this number goes down to one or two percent.

No comments:

Post a Comment