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Wednesday, February 03, 2010

Ring of Fire

From Bond King, Bill Gross:



(click to enlarge)

The most vulnerable countries in 2010 are shown in the chart “The Ring of Fire.” These red zone countries are ones with the potential for public debt to exceed 90% of GDP within a few years’ time, which would slow GDP by 1% or more. The yellow and green areas are considered to be the most conservative and potentially most solvent, with the potential for higher growth.