Comments on: The cost of being a contrarian for contrarian’s sake http://www.sovereignman.com/finance/the-cost-of-being-a-contrarian-for-contrarians-sake/ Mon, 06 Sep 2010 21:11:50 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: BondTrdr http://www.sovereignman.com/finance/the-cost-of-being-a-contrarian-for-contrarians-sake/comment-page-1/#comment-4498 BondTrdr Fri, 05 Mar 2010 12:21:33 +0000 http://www.sovereignman.com/?p=1396#comment-4498 That's right, Jeff-- 200 billion in debt for China would be nothing; 2 billion in debt for Vanuatu would be catastrophic. What Simon is saying is that Singapore's debt is not real debt in the same way that the US government issues hundreds of billions of dollars in debt, then squanders all the proceeds on war and wasteful social programs. Singapore's government takes money in strictly to facilitate a local market in bonds... if they did not do this, there would be no bond market, and hence no financial center. That’s right, Jeff– 200 billion in debt for China would be nothing; 2 billion in debt for Vanuatu would be catastrophic.

What Simon is saying is that Singapore’s debt is not real debt in the same way that the US government issues hundreds of billions of dollars in debt, then squanders all the proceeds on war and wasteful social programs. Singapore’s government takes money in strictly to facilitate a local market in bonds… if they did not do this, there would be no bond market, and hence no financial center.

]]> By: Mike http://www.sovereignman.com/finance/the-cost-of-being-a-contrarian-for-contrarians-sake/comment-page-1/#comment-4497 Mike Fri, 05 Mar 2010 10:07:19 +0000 http://www.sovereignman.com/?p=1396#comment-4497 Would like to hear your take on the Japanese debt market Simon. I hear a lot about Japan's high debt to GDP but suspect we're somewhat talking apples and oranges relative to other deficit spending welfare states. Would like to hear your take on the Japanese debt market Simon. I hear a lot about Japan’s high debt to GDP but suspect we’re somewhat talking apples and oranges relative to other deficit spending welfare states.

]]> By: Jeff http://www.sovereignman.com/finance/the-cost-of-being-a-contrarian-for-contrarians-sake/comment-page-1/#comment-4495 Jeff Fri, 05 Mar 2010 02:13:59 +0000 http://www.sovereignman.com/?p=1396#comment-4495 Trying to follow this. I can understand if 200 billion (or 2 Trillion) in debt means little in the scheme of things vs a country's GDP, if the GDP is high enough. But 99% debt to GDP is pretty high, eh? What is Singapore's annual surplus per year vs. their debt? Trying to follow this.

I can understand if 200 billion (or 2 Trillion) in debt means little in the scheme of things vs a country’s GDP, if the GDP is high enough.

But 99% debt to GDP is pretty high, eh?
What is Singapore’s annual surplus per year vs. their debt?

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