For your cheery reading of the day, check out this post at Zerohedge which includes an extensive quote of Paul Singer. As a palliative keep in mind that the folks at Zerohedge are gold bugs.
I think they’re asking the wrong question. If bonds do, in fact, crash, I doubt they’ll all crash at once. I think that Europe is at much greater risk than we are.
In one sense they’re right. Fiscal and monetary policy have been lousy for a long time and, as has been said, anything that can’t go on forever won’t.
It’s a bizarre post. The notion here is that markets correctly price everything, therefore Japan should be bankrupt. This of course assumes that market pricing always delivers the best possible outcomes regardless of what is being priced, which virtually no economist would agree with. Faith and belief justify the results.
If it isn’t clear ZH’s post is bizarre, not Dave’s.