Bond Market May Not Warn When Debt Crisis Strikes
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May 17 (Bloomberg) -- One by one, European nations areletting their voices be heard, tossing out the party in powerand voting in those who, in some cases, have a more radicalagenda or, in others, are just willing to say “no” to thestatus quo. A bas l’austerite! Down with austerity! Up withgrowth!
If only it were that simple. That’s how the trade-off isbeing portrayed, and perhaps that’s what policy makers pushingthe idea, and individuals on the receiving end, want to believe.With many euro-zone countries in recession, one can understandthe appeal. Spend more, grow more and presto! The debt shrinksin relation to the economy and becomes more manageable.