Morgan Stanley analyst Arnaud Mares in the firm’s London office, issued a warning that some governments will have no alternative but to default on future debt obligations.
Ã¢â‚¬Å“Governments will impose a loss on some of their stakeholders,Ã¢â‚¬Â Arnaud Mares in the firmÃ¢â‚¬â„¢s London office wrote in a research report today. Ã¢â‚¬Å“The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.Ã¢â‚¬Â The sovereign-debt crisis is global Ã¢â‚¬Å“and it is not over,Ã¢â‚¬Â he wrote.
In the report, Mares described the risk of default with large, advanced economies as “extremely unlikely”, “but current yields and break-even inflation rates provide very little protection against the credible threat of financial oppression in any form it might take.Ã¢â‚¬Â
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