Sovereign Debt Remains Big Issue for Markets

One of the big issues recently has been that of sovereign debt. Debt concerns in Greece have many thinking about where else such problems could arise. Indeed, there are many developed countries that are seeing an increase in sovereign debt as a result of economic stimulus borrowing.

Those countries include Britain and the U.S. After watching what has been happening in Greece, some are concerned that the U.S. and Britain might have taken on more debt than they can handle. As a result, concerns about sovereign debt are becoming a focus.

However, few are terribly concerned about Britain the U.S. yet. For now, additional sovereign debt concerns are mostly focused on Portugal and Spain. These countries have high amounts of debt as well, and appear to be approaching the same situation as Greece.

Unless countries can get their spending under control, and get their debt sorted out, it could be another global financial crisis.