sovereign default

Why Interest Rates Keep Rising, Despite QE2

The Federal Reserve is doling out billions to buy bonds in hopes of keeping interest rates low and stimulating the economy. However, several powerful forces are working against that low-rate strategy, ranging from investor psychology to global competition for capital.

Ireland's Austerity Budget:
Not Likely to Avoid Default

Despite its planned austerity budget, the long-term solvency of Ireland is still in doubt. Simply put, the losses which Irish taxpayers must cover are larger than the nation's economy can support, making sovereign debt default likely even with a promised bailout from the EU and IMF.