Tweet me!The same issues are applying to Greece, Portugal, Spain, Ireland, California, New York and the CEE countries. Poor fiscal prudence was abound in the bubble boom times, with budgets and asset prices bulging. When the bubble pops, the revenues and asset values deflate but the debt and deficits remain the same, no they actually grew.
When (not if) the sovereign debt and deficit issues become more prevalent in the media (as opposed to just BoomBustBlog subscribers), it would be inaccurate to label it as a contagion when the reality of the situation is that it is simply the natural progression of poor fiscal management after a credit, real and financial asset bubble. I will try to put my CEE research and opinion out by tomorrow to exemplify how far and quickly this can roll through Europe.
I have been warning of this since this time last year, with my BBVA and Spain macro analysis. See the refresher that I released about a week ago, just in time to take advantage of the melee': The Spanish Inquisition is About to Begin.
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