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Monday marks a significant anniversary in recent economic history for it was on this day in 1982 that Mexico announced a moratorium on its international debts. The default marked the start of what became known as the third world debt crisis.
Three decades later that crisis is now the first world debt crisis. For Mexico read Greece. For American, British and Japanese banks recycling the 1970s windfall profits of oil producers to sub-prime Latin American governments read US and European banks pumping out cheap credit to sub-prime mortgage holders. For the syndicated loans that allowed banks to lend recklessly without the necessary prudential checks read the securitisation of loans that allowed banks to bundle up the good mortgages with the bad and sell them.
Guardian UK article
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