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Risk premium, something more

Not everyone to squander one's money these days of debauchery. There is a growing tendency by economists and politicians to scold and blame current people for all the evils existing, and thus justify a number of unfair measures against the population. We talk about how they mistreat the citizens standing with the excuse that the "blame" is of their, and while no one touches the rich and their servants, politicians and economists. This necessary collaborators both in action as  omission, neither warned nor acted when it was time, the few things they did just helped ruin the situation more and continue they are doing. Now we find that the punishment falls both as right as guilty. Even more dramatic is the injustice of all, those who have saved and have not followed the mainstream and the general festival, now are suffering like the others. It's like the fable of the ant after working all summer, in winter it was expropriated the nest and left in the street next to the ...

The lie of Risk Premium

Each issue of sovereign debt, state decides interest that it will be issued, it will put on sale and them the fraction that will not be covered, will be sold in an auction. The auction set how much interest will be returned the part sold at auction, the rate of overinterest of sovereign debt in relation to lower of all sovereign debt is the risk premium. His name is because it is considered that this overinterest is the profit needed to cover the increased risk of non-payment at term respect that has the lowest interest that is considered of minimal risk. This is not new, in the seventeenth century soldiers recruited by the kings of Spain were better paid than those recruited by the French king. The reason was that most soldiers were recruited in the border territories, of course volatility borders in the period that potential soldiers did no matter to be recruited as an army with one another, in the seventeenth century the army Hispanics never won a battle, it gave very little surviv...