Morgan Stanley Fears UK Sovereign Debt Crisis In 2010

Interesting article in the UK times about a research note put out by Morgan Stanley (MS).  The article suggests that 2009 has not resolved the underlying problems in the financial sector around the world.  The government bailouts and stimulus have created new sets of issues.  This is another interesting piece talking about the potential for markets to move as the UK unveils its’ next budget  (The Leaks That Prove How Worried Treasury Is)

While the report - “Tougher Times in 2010″ - is not linked to the Dubai debacle, it is a reminder that countries merely bought time during the crisis by resorting to fiscal stimulus and shunting private losses onto public books. The rescues - though necessary - have not resolved the underlying debt problem. They have storied up a second set of difficulties by degrading sovereign debt across much of the world.

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Comment by Steph

2009-12-03 07:23:30

It is quite difficult to ignore the recession and where possible if equity is still sufficient people will try to absorb unsecured debt and lower monthly repayment with interest rates being so low. The other option is debt management.

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