Debt seems to be a necessary trigger condition for global economic disasters.
Doesn’t matter if its private (subprime mortgages) or Government (Greek debt).
But Japan shows debt is not a sufficient condition for a meltdown. (Government debt = nearly 200 percent of GDP)
So what is the extra ingredient that turns the dough of debt into the crusty baguette of financial crisis? Continue reading Baking the dough of debt into the bread of financial crisis.