Low interest rates are encouraging companies to take on a level of debt that risks becoming a $19 trillion time bomb in the event of another global recession, the International Monetary Fund has said.
In its half-yearly update on the state of the world's financial markets, the IMF said that almost 40% of the corporate debt in eight leading countries - the US, China, Japan, Germany, Britain, France, Italy and Spain - would be impossible to service if there was a downturn half as serious as that of a decade ago.
Global economy faces $19tn corporate debt time bomb, warns IMF: https://amp.theguardian.com/business/...
Bond Ratings Firms Go Easy on Some Heavily Indebted Companies https://www.wsj.com/articles/bond-rat...
One Bank Finds Major Cracks In The Leveraged Credit Market https://www.zerohedge.com/markets/one...
Danielle DiMartino Booth Speech from October 2019 Stansberry Conference: https://youtu.be/gh16UlreKfo
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.