In the long term, the problem of sovereign debt will be too great to be ignored, especially if governments need to support the economy or the unemployed resulting from the public health crisis, which has stopped the main world economies. One solution would be a concerted moratorium in a Bad bank style, with that debt being parked for a substantial period. This plan would have to involve Central Banks and the main governments of the world, which in Europe foresees itself complicated, given the existing friction that was created between the decision of the Germany’s Constitutional Court to demand justification from the ECB for the procurement program. of bonds recently announced by the central bank, and if this is not overcome, the Bundesbank may stop participating, that is, a political imbroglio that only goodwill can remedy. We will see if this will exist or not, having already criticized the capacity of the current European Commission President, German Ursula von der Leyen, of being able to lead the European Union in this complicated phase.
In any case, the risks are more than many and this is leading to some investor caution at the beginning of the week, however I remember that last year Wall Street ran over all the risks, which were also substantial, and reached new historical highs, history repeat itself?
