States and Sovereigns: Eurozone and U.S. State Debt Woes
Today, asset managers are gauging the potential consequences of ballooning debt in two diverse markets: U.S. states and the peripheral members of the Eurozone that include Portugal, Ireland, Greece, Spain and, to a lesser extent, Italy. In both cases, governments struggle with debt issued in currencies they do not control. This eliminates devaluation as a solution and raises the specter of potential restructuring.
Do U.S. states and Eurozone nations present similar risks? Are their debt and deficit levels sustainableand for how long? How do recent political events shade the forecasts for each market?
For timely insights into these developing issues, download your copy of States and Sovereigns: Eurozone and U.S. State Debt Woes, authored by senior strategists at Roubini Global Economics and exclusively available through Pershing. This important paper offers in-depth analysis of such critical questions as:
Will U.S. state finances weather the crisis, given their diminished revenue and looming liabilities for pensions and other public employee expenses?
What is the likely outcome of recent European efforts to provide liquidity and resolve the crisis?
How high is the risk of debt default among nations on the Eurozone periphery in the next two years?