Will developed debtors adjust to reality?

The perfect storm that erupted with unanticipated fury on August 1 shook the world. Outcomes had materialised that financial markets wanted to see. Further, if yet insufficient, action was taken on Greece. Agreement was reached in the US Congress on the debt ceiling. As these imminent threats in the EU/US were de-risked, markets realised belatedly that their attention was misplaced. Despite actions taken, debt problems in the EU and the US were so large as to be intractable to resolve, politically or economically.

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