Amudim

[GreekIdiot]

From bad to worse: defaults pass 4% threshold, Amshinov calls for Bannerpakt summit, Tel Bira pauses entry to NAM

October 5637

Tel Bira, Adishut Nisrad - What are defaults? It's when you fail to pay your loan. The more of us that don't pay our loans, the worse the situation gets. But that's not the actual problem. The actual problem is that the wealthy leverage debt by taking loans against their assets appreciating, as markets keep spending and growing. So, when many of us fail to pay our loans, debt accumulates and the value of assets goes down.

Now the wealthy are in trouble. And if us mere mortals have loans of 100K CFR, the wealthy have loans of 100M CFR.

Imagine the scale of the ripple effect.

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While Dolgava's declaration of war has further destabilised northern markets involved in the ongoing conflict in Central Artania, what pushed defaults over the ledge of the 4% threshold was Melikvan's acknowledgement of a "bad situation" back in the beginning of the summer. Pontesi's domestic financial troubles have further contributed to downturns in the TBSE and BSE, considering the country's extensive attachments to markets in Amudim and Narikaton and Darnussia; the latter, carrying the other two as the BNRPAKT industrial index continues to resist the decline.

Although economists were hopeful at Pontesi's domestic calls for privatisation and the Equifund's resilience, the general sentiment across the board is that defaults will continue to rise, exponentially increasing the possibility of one or more needed bailouts.

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Yeudi banking's association with Canrillaise old money is widely known in financial circles. And Yeudi banking's beating heart is largely located in Tel Bira. Thus, it was no surprise that the city state decided to pause its entry to the Kalistani authored Non-Aligned Movement after the EESE's opening bell in Eroncourt on Friday took a hit from the ripple effect in the Neset 314 market index.

The hit fuelled extensive rumours over the weekend that Tel Bira and the Union of Nisrads as a whole are considering a re-alignment against Kalistan, with the Secretary of the Union from Sholemberg calling the Seleyan country as "once the authors of neutrality and non-intervention, now enthralled in one of the messiest situations in modern times - in a foreign continent not of their own, no less".

Another rumour indicates that Himmelshtern may soon begin lobbying towards Amudim's withdrawal from the Ananto Strait Accords, as well.

@Neset