1. Why is so much sovereign debt held by gamblers.....I mean hedge funds? I understand that these government bonds are financial instruments on the one hand but they also represent much more to the country issuing the bonds - retirement, capital expenditures, welfare state deficits, etc. These bonds are dependent upon a long term stable future that allows a country to retire the debt over a period of time. Hedge funds by their very nature are not long term oriented and to have such a large stake in any one country's future doesn't appear very smart especially since most of this debt is financing the illogical schemes of the European welfare state.
2. Why is there no analysis of the sovereign debt that is being used to finance the welfare state? Perhaps Germany with its uniqueness can get away with it's high productivity and an export oriented economy, but it is just a catastrophe waiting to happen in the more profligate countries like Greece, Italy and the Iberian countries. I find it ironic and ludicrous that President Obama wants the United States to become more like Europe with a cradle to grave welfare system. Unfortunately, none of the GOP candidates except for Rep. Ron Paul oppose this trajectory towards socialism.
The welfare state is a lie. It is government's attempt to buy the loyalty of its citizens. It may start out with good intentions but eventually it becomes an instrument of control of the citizenry. It's true cost is never revealed and the craven politicians and their overlords are content to push off this debt to future generations with the connivance of the financial markets who love the long term interest. Top-down security is also very inefficient as layers of bureaucracy live off the largess of the taxpayer on borrowed money and by the time services are delivered the quality and the quantity are found wanting. The 'system' gives the citizen a false sense of security since he or she believes that the all mighty and powerful government stand behind the promises of a 'free lunch' life.
Eventually, the welfare state is a pyramid scheme in which all the parties are guilty. It can only happen because the concept of sovereign debt is allowed to be floated in the financial markets and gargantuan amounts of interest allowed to be paid to banksters and other cretins sitting is the skyscraper offices thousands of miles away staring at their over-sized computer monitors.
Just as a rotten apple eventually falls to the ground, so are the economies built on the sand of debt falling also.
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