Risks - Higher rates and Creditor strike

All the financial and economic geniuses teaching Finance have forgotten that credit depends to a large extent on trust (lat. credere, to believe, trust in). Banks relying on buying in deposits, companies rolling over their commercial paper on a daily basis, countries buying off their voters with ever-increasing levels of borrowing all have to face the fact that when the music stops there might not be a chair left for them in the frantic scramble to replace maturing funds.
It is even more laughable to hear that Greece  claims (supported by many 'experts') that it cannot afford to pay interest rates of 6.5 or 7 per cent. I only can say, get real guys! Rates have been in double digits in the past few decades, and anyone thinking that this cannot happen again better wake up before it is too late. Interest rates do not have to reach extreme levels, but anything in the 5-7 per cent range, with a possible overshoot towards 8 or 9 per cent is in the realm of the possible. I used to say (well before the credit crunch!) that hardly anyone was prepared for a sudden shift in asset prices by 20 per cent. Little did I know that that was a conservative estimate in view what happened during 2007/09. Now I would warn all debtors to plan for higher rates.