Telegraph: Reports on another bad day on the money markets both sides of the pond. It the UK the FTSE - 100 is down 157.46 points at 4914.22, while at 5.52pm UK Time the Dow Jones is down 236.32 points at 9902.9. The problem is simple folks, it’s the Sovereign debt of the US and EU. This blog picked up a simple answer to the problem from a TV pundit, 1) People getting Houses they could not afford and thus we come to the 2) the banks having a lot of red ink from people who could not afford to pay the banks for their houses 3) the Western Governments took over the debt but with their own debt the system is at breaking point. Thus as long as we have Greece, Portugal, Ireland, Spain on the verge of going broke the system will never recover, the problem is that all these countries have a welfare state and they cant afford it any more, thus who will be the brave politician who tells the voter its has to end, cuts are one thing, telling the voter that their benefits are over is another, lets see who has the guts to tell the truth.
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