SOS Red PIGS?

Are we gonna see red in PIGS? Portugal, Iceland, Greece, Spain

or further BAUL? Britian, Agrentina, Ukraine, Litva

There are more, these are the sign of the implosion of both

1. conventional debts


2. derivatives debts

due to reckless borrowings by consumers as well as reckless investment in derivatives by the banking and non-banking institutions.

Are the steps taken by FED or EU central banks right?

1. bailout of banks - bad for economy


2. stimulate economy by government - bad for economy


3. reduce interest rate to near zero - bad for economy


4. intervention of economy by government - bad for economy

The above steps mainly putting good money into bad investments or cause employment in the unproductive sectors, period. When have we seen a government run economy achieve sustainable economy, just look at JAPAN.

MyView

If the over consumptions + over leveraging (conventional type and derivative type) in Europe and USA can be solved by print, guarantee, lent and intervene hence, these economy should CONTINUE to do the same, and when crisis comes again, just do the same, print, guarantee, lent and intervent.

Who should pay for these SINS? What are the consequences to their countries and the rest of the world?