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Abu Dhabi has given temporary reprieve to Dubai so concerning maintain investor confidence in the community. But such actions of saving nations from becoming bankrupt will be possible as long as there is merely few and a lot between installments of sovereign defaulting. But what happens pricey nations in the latter group a debt trap that they cannot extricate they are. Many developed European nations are concerning the brink of sovereign evasion. Greece, Spain, Ireland are a couple of such accounts. Then there are a number of East European nations which are tottering under the burden of massive bills. Who will ultimately bail out that?
11. Federal government also faced no spending limits (that what is the best asset class, borrowing limits.) Bailouts were handed to businesses which were deemed “too big too fail” without corresponding tax increases passed along to the voters.
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