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Theres a confidence problem in the Sovereign Debt Markets due to the high level of debt that all countries contract in the past years, principally and due to the Subprime crisis that took liquidity from the markets. This liquidity was based in false assumptions and many of creative financial makers created products and structured products that were based in a virtual asset that didnt have the value that was registered in the balance sheets.
This created a very serious lack of confidence, as result of the lack of high level of return and low risk as promised by the vaporware financial instruments that was the basis of what we know today as Subprime. The costs of Subprime are still unknown due to the maturity of great number of contracts that only will...
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