Was thinking the exact same thing. Govts. have rushed to nationalise the banks, are we next? Why have banks collapsed so quickly? Which entity is calling in the debt of these institutions?
Govts. have now guaranteed against failures, but what is the potential cost?
If there is a tsunami of liabilities to hit these institutions and the Govt. is liable what will this do to the BOND MARKET?
A collapse in the bond market will make higher interest rates unavoidable.
