The European sovereign debt crisis is well and truly back and on the minds of investors attempting to asses whether or not it will expand beyond Portugal’s borders.
Harvard and Oxford historian Niall Ferguson released a presentation last year on how such crises develop, and it’s vital reading for anyone trying to understand the times we live in.
This isn’t just about the “PIIGS” states, it is about the United States and United Kingdom, and their very real crisis in public finances. It is about what these states are going to have to sacrifice to maintain stability, in both a fiscal and political sense.
The speech, made at the Peterson Institute for International Economics, can be watched at their site, but we have the amazingly powerful presentation here.