Governments Will Need to Issue $15-33 Trillion in Bonds

Niels C. Jensen, a partner with Absolute Return Partners LLP, has written an interesting essay on the need of governments around the world to issue bonds to pay for their respective bailouts.

As summarized by Nouriel Roubini, Jensen shows:

The Housing Bust Takes Center-stage

The Fed’s $12.8 trillion of monetary stimulus has triggered a six week-long surge in the stock market. Think of it as Bernanke’s Bear Market Rally, a torrent of capital gushing from every leaky valve and rusty pipe in the financial system. The Fed’s so-called “lending facilities” are a joke; stocks rocket into the stratosphere while the broader economy is stretched out corpse-like on a cold marble slab. Is this an economic recovery or just more of Bernanke’s “no down” zero-percent “no doc” faux prosperity?