Quote:
Originally posted by Tyrone Slothrop - This paper shows how data from world financial markets can be used to shed light on the central question of whether the Surge has increased or diminished the prospect of today's Iraq surviving into the future. In particular, I examine the price of Iraqi state bonds, which the Iraqi government is currently servicing, on world financial markets. After the Surge, there is a sharp decline in the price of those bonds, relative to alternative bonds. The decline signaled a 40% increase in the market's expectation that Iraq will default. This finding suggests that to date the Surge is failing to pave the way toward a stable Iraq and may in fact be undermining it.
This paper, via Alex Tabarrok.
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Ergo, the U.S. is increasingly un/in/non/stable because the price of debt has gone up in the last few months. Bullshit.
I so doubt that there is any real market in Iraqi debt, that I suspect this asshole's 40% figure refers to a fluctuation between $0.01 on the dollar to $0.006 on the dollar with the last trade being three weeks ago for one contract.
Ty, I like your fight sometimes, but this is weak.
