{"id":188069,"date":"2010-01-16T10:02:52","date_gmt":"2010-01-16T15:02:52","guid":{"rendered":"http:\/\/www.businessinsider.com\/heres-why-a-sovereign-debt-crisis-is-set-to-begin-2010-1"},"modified":"2010-01-16T10:02:52","modified_gmt":"2010-01-16T15:02:52","slug":"heres-why-a-sovereign-debt-crisis-is-set-to-begin","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/188069","title":{"rendered":"Here’s Why A Sovereign Debt Crisis Is Set To Begin"},"content":{"rendered":"

In 2009, downgrades and debt auction failures in countries like the UK, Greece, Ireland and Spain were a stark reminder that unless advanced economies begin to put their fiscal houses in order, investors and rating agencies will likely turn from friends to foes.<\/p>\n

The severe recession, combined with a financial crisis during 2008-09, worsened the fiscal positions of developed countries due to stimulus spending, lower tax revenues and support to the financial sector. The impact was greater in countries that had a history of structural fiscal problems, maintained loose fiscal policies and ignored fiscal reforms during the boom years. Going forward, a weak economic recovery and an aging population is likely to increase the debt burden of many advanced economies, including the U.S., Britain, Japan and several eurozone countries.<\/p>\n

In 2008 and 2009, the decisions by these governments to do “whatever it takes” to backstop their financial systems and keep their economies afloat soothed investor concerns.<\/p>\n

Read the rest at Forbes.com — ><\/strong><\/a><\/h2>\n

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