The national bankruptcy is the last of all possible bubbles that may arise in financial markets. What was
bubbles before it, and how are they related?
We first had a housing bubble in the United States triggered by lax lending by American banks. The transformation of this market segment to other work more or less the same. Whether banks, hedge funds, special investment vehicles or CPPI were structures, it was always followed the same
Prepare a balance sheet consisting of an asset and a liability side of (shares the liabilities side, in debt and equity to) and operates on this review, a "leveraged Interest Maturity transformation ", ie with as little equity and lots of debt is trying to get the largest possible active site. Additionally, we compared short-dated liabilities stores long-running active transactions, reducing the risk of such structures have slightly increased.
Since the asset side of the property market is invested (eg asset-backed Securites ABS, etc.) and liabilities in the capital market (eg Medium Term Notes MTN, etc.) is transforming the bubble in the real estate market in the capital market. The result is a financial bubble, which is the financial crisis.
is finally addressing the problem of similar balance sheet structures transformed by the capital market in the stock market. And most recently over government bonds to the States. Therefore, the state defaults.
is basically what we are experiencing since mid 2007, always the same: liquidity constraints. Balance sheet structures can only live when the assets and liabilities are respective social, in other words, if the interest is for investors who have invested in the liability side, can be paid at any time. Is this not the case, dies the structure, which manifests itself in the collapse of Lehman, settlement HVB, Iceland's bankruptcy.
Back to the subject comes to what is now?
It is important fool the investors an idea that the domestic economy is stable, that politicians act decisively and closed. This allows government bonds issued (to raise outside funds) with which to save the local economy. The investors are not convinced that the state is stable, these bonds are expensive ( http://www.boerse-express.com/pages/745641 ). And who is currently trying to convey the image on most of a strong domestic Wirschaftskraft than Obama? I am currently very much the impression that no one except the Americans can really overcome the crisis. Even the British are finished with their system. Greece and Spain, it is similarly poor (http://www.welt.de/finanzen/article3019781/Staatsanleihen-Spanien-droht-zu-straucheln.html ).
It is therefore important that Germany does an image of strength. As such, it is perhaps very fortunate that Finance Minister Michael Glos by the global situation on financial markets evolved successor will inherit ( http://www.spiegel.de/politik/deutschland/0, 1518,606286,00. html ). makes me worry
but still the general election .... the wrong time! Not in 2009! I would ask for a postponement, if not for the bad experience that has made Germany, as democracy has been undermined and would have led to the rise of Hitler.
What is important now is that Germany politically, economically socially and gives a picture of strength and unity. The better manage the more interest on government bonds can be saved.
