Global Economic Collapse 2012: Looming Threats from the Bond Market - International Business Times: Still, some analysts have not ruled out the possibility of a global economic collapse in 2012.
Michael Pento, President of Pento Portfolio Strategies, sees major risks in the sovereign bond market of the developed world.
“The truth is that Europe, and quite possibly Japan and the U.S., face a recession in 2012 due to a full-blown bond market crisis,” said Pento in a research commentary.
The Eurozone is already on the brink of toppling. The yields on the 10-year debt of Italy and Spain are near 7 percent, a level that is likely unsustainable. If this trend of rising yields continues, these two countries will go the way of Greece.
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