Odds of Venezuelan Default Within 5 Years Hits 63%; Investors Realize Venezuela May Run Out of Money

Jon Banking, Blogosphere, Economy, Government, Market Commentary

Venezuela has nice oil reserves but the government is spending more cash than it receives from pumping oil.
Investors are finally starting to realize Venezuela may run out of money and will be forced to default on bonds.
Please consider Venezuelan Bond Rout Deepens as Default Specter Raised
Venezuelan debt traders are beginning to consider the possibility the country may run out of money.
The cost of insuring the country’s foreign-currency bonds against non-payment soared yesterday by the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse in 2008 to 14.25 percentage points, the most expensive in the world.

This post was published at Global Economic Analysis on September 09, 2014.