Comments on: IS UK Going Bankrupt or Is it Just Another Witch Hunt?

By: Is it the right time to buy British Petroleum (BP) or the end of a British Empire? « Intelligent Speculator

Sat, 05 Jun 2010 21:47:28 +0000

[...] some have predicted that Britain might go bankrupt, it seems to be one or perhaps the most known British company that could not survive the current [...]

By: The Financial Blogger » Blog Archive » Is US Government to Lose its AAA Credit Rating?

Thu, 28 May 2009 10:22:35 +0000

[...] that the UK government will lose its AAA before the US government does. We even heard rumours about UK going bankrupt. While I still think that this even will never happen, I would not be surprised to see the UK [...]

By: Intelligent Speculator | IS recommended readings!

Intelligent Speculator | IS recommended readings! — Sat, 21 Mar 2009 16:07:41 +0000

[...] Is UK going bankrupt or Is It just another witch hunt? by TheFinancialBlogger [...]

By: IS

IS — Fri, 20 Mar 2009 19:01:44 +0000

In fact the main consequences are that countries that go bankrupt usually will still need to borrow money to keep things going. Generally, international orgs such as the IMF will step up to give loans in such discussions. However, the IMF will then require specific conditions to be met including changes in the way the government functions.

As time goes by, the country will need to finance its debt by issuing bonds and the problem is that the country will have to pay bond investors a lot more interest for them to buy those bonds because the bondholders will remember what happened and the money lost.

So the country might end up paying a few % points more on its debt for a decade or more, which will make it a lot more difficult to run the national budget.

By: Goal Hunter

Goal Hunter — Thu, 19 Mar 2009 12:13:13 +0000

IS: That was my question. I know a country can meet the definition of bankruptcy, but then what? What are the consequences beyond what caused the bankruptcy. For a person, you basically lose all your assets and start from zero as per bankruptcy laws.

For a country? Nobody really has legal jurisdiction so other than being looked at unfavourably by lots of countries and people, what is there?

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Reality Show Casting Call For Wife Swap, Want To Earn $20,000? — Thu, 19 Mar 2009 02:45:47 +0000

[...] The Financial Blogger: IS UK Going Bankrupt or Is it Just Another Witch Hunt? [...]

By: IS

IS — Thu, 19 Mar 2009 02:09:56 +0000

Yes, absolutely a country can go bankrupt, it happens when they “default” on their sovereign debt and has happened a few times lately, Argentina and Russia are the most obvious examples.

There are many consequences both short term and long term for such countries so it is not to be taken ligtly..

By: The Financial Blogger

The Financial Blogger — Thu, 19 Mar 2009 00:05:39 +0000

Since we are already in a turmoil, what can be worse ? hahaha!

Seriously, I maybe I’m ignorant, but I don’t realize how UK can go bankrupt! If it ever happens, I’ll offer to buy them for $1… CANADIAN DOLLAR!

By: Goal Hunter

Goal Hunter — Wed, 18 Mar 2009 15:12:22 +0000

Can a country even go “bankrupt”? I know they can meet the definition of a bankruptcy but there would be no consequences would there, beyond the obvious turmoil of their economy.

By: Sarah Johns

Sarah Johns — Wed, 18 Mar 2009 10:48:21 +0000

Media is misleading people too much these days