> The major problem facing the world economy is excessive sovereign debt, and you cant blame the banks for that.
In a country like Greece this may be true, but in Spain - for instance - the country's sovereign debt before the financial crisis was low: it's the possibility of Spain having to bail out its over-indebted banks that is driving government bond yields higher there.
In the UK, the government was forced to nationalise the imprudent RBS and as such increase its own debt burden.
And in the US, the government has been motivated to issue more and more debt partly to help re-capitalise insolvent banks...
In a country like Greece this may be true, but in Spain - for instance - the country's sovereign debt before the financial crisis was low: it's the possibility of Spain having to bail out its over-indebted banks that is driving government bond yields higher there.
In the UK, the government was forced to nationalise the imprudent RBS and as such increase its own debt burden.
And in the US, the government has been motivated to issue more and more debt partly to help re-capitalise insolvent banks...
The banks are definitely to blame.