{"id":47229,"date":"2009-11-23T11:07:41","date_gmt":"2009-11-23T16:07:41","guid":{"rendered":"http:\/\/www.businessinsider.com\/sovereign-debt-the-new-subprime-2009-11"},"modified":"2009-11-23T11:07:41","modified_gmt":"2009-11-23T16:07:41","slug":"sovereign-debt-the-new-subprime","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/47229","title":{"rendered":"Sovereign Debt: The New Subprime"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4a7756b808f4c83f679f3276\" border=\"0\" alt=\"gillian-tett.jpg\" \/><\/p>\n<p>A few weeks ago, Claudio Borio, head of research at the Bank for International Settlements, <a href=\"http:\/\/www.g20.org\/Documents\/g20_workshop_causes_of_the_crisis.pdf\">warned in a solemn note<\/a> to Group of 20 leaders that modern financial policymakers are &ldquo;driving while just looking in the rear-view mirror&rdquo;: western finance officials have focused so much on past risks that they fail to spot new dangers.<\/p>\n<p>Worse still, as policymakers rush to implement reforms in response to one financial calamity, they are apt to create distortions that pave the way for the next disaster. Just such an unintended consequence could now be festering in the banking sector, as its balance sheets are increasingly stuffed with <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/0e7bd162-d3ac-11de-8caf-00144feabdc0.html\"  title=\"Financial Times - Boom time for bond traders\">government bonds<\/a>.<\/p>\n<p><a href=\"http:\/\/www.ft.com\/cms\/s\/0\/86a7ca6a-d794-11de-b578-00144feabdc0.html\">Keep reading at FT &gt;<\/a><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/sovereign-debt-the-new-subprime-2009-11#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/the-10-greatest-trades-of-all-time-2009-11\">The Greatest Trades Of All Time<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/jeff-saut-even-if-stocks-are-a-bubble-everyone-has-to-keep-buying-2009-11\">Jeff Saut: Even If Stocks Are A Bubble, Everyone Has To Keep Buying<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/ben-bernankes-1938-parallel-2009-11\">Ben Bernanke&#8217;s 1938 Parallel<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A few weeks ago, Claudio Borio, head of research at the Bank for International Settlements, warned in a solemn note to Group of 20 leaders that modern financial policymakers are &ldquo;driving while just looking in the rear-view mirror&rdquo;: western finance officials have focused so much on past risks that they fail to spot new dangers. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-47229","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/47229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=47229"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/47229\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=47229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=47229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=47229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}