United States Corporate Debt Getting Ready to Default BIG TIME!
COLLAPSING WESTERN FINANCIAL SYSTEM
May 27 (EIRNS)—The ratings agency Moody’s Investors Service has given the clearest warning yet of the possibility of a U.S. corporate debt blowout on the horizon.
A new report issued by Moody’s says that the junk debt in the U.S. corporate sector now amounts to approximately $3.7 trillion, and that $2 trillion of that belongs in a new designation created by Moody’s: “highly speculative” (graded B1 or lower) as opposed to merely “speculative.”
Internationally, the report says, a full 58% of all non-financial companies are now given the debt rating “speculative” by the ratings agency; and 40% are given the rating “highly speculative.”
Getting to the point, the report, as quoted by CNBC on May 25, says, “Strong investor demand for higher yields continues to allow all but the weakest issuers to avoid default by refinancing [their] maturing debt. A number of very weak issuers are living on borrowed time while benign conditions last.” These are the so-called “zombie companies” much discussed in financial analyses of the European economies; and again, Moody’s is raising the possibility this may approximate 40% of non-financial companies.
The report concludes that “The record number of highly leveraged companies has set the stage for a particularly large wave of defaults when the next period of broad economic stress arrives.”
That stress period has arrived, in fact, with dollar-linked interest rates rising at a faster pace than the Federal Reserve is raising its key rates. Plunging currency values hitting those countries with large amounts of dollar debt, such as Argentina, Turkey and Brazil, are one sign. The U.S. corporate debt bubble itself is set to implode at some point in this process, as Moody’s and the IMF warned already one year ago. Though not reported here, there has been a 4% drop so far in 2018 in the value of the average corporate bond, internationally.
Intersecting this is the indication that the “long time Deutsche Bank has been taking to die” may soon come to an end unless that giant derivative bank is thoroughly reorganized.
Red Flags Are Suddenly Soaring in Markets –Wall Street Journal
“Italy’s bond market is in meltdown, its politics in crisis after President Sergio Mattarella blocked the formation of an antiestablishment government and its credit rating under threat. That is all now making bigger waves: Europe’s deepening troubles and disappointing global growth signals are sparking a sudden rally in haven bonds like U.S. Treasurys. Risk aversion is back. The moves are notable because haven bond yields have until now shown little reaction to the creeping tide of unsettling news that has emerged in 2018. The overwhelming focus has been on how far and fast yields might rise, particularly in the U.S. Instead they are falling rapidly. The 10-year German Bund yield now stands at just 0.19%, more than halving in the past two weeks and its lowest since early 2017….Italian bonds and stocks are just the latest in a string of risk-seeking trades that have run into trouble in 2018…The market ride is set to get bumpier.”
My Comment: The EU puppets are paid off by and run by Washington, D.C. and Wall Street. They do what they are told to do. Period. As you can see they maneuvered President Mattarella into blocking an antiestablishment gov’t to save Italy which, Once again, Benefits the United States Bond Market. The United States is now screwing its vassals to save its’ bankrupt financial system created by the Rothschild ZIONIST MAFIA! After all this Rothschild ZIONIST MAFIA Controls our FEDERAL RESERVE BANKING system and created the Federal Reserve Dollar Money as DEBT.
Be Aware That Satanic Soros Wants African “Refugees” or I Say Terrorists Migrating to Europe Using the Economic Problems Caused by the Derivatives Banks For His Nasty Solution
Europeans need to prepare for a RAPE Culture and More Violence
Soros Sees New Global Financial Crisis Brewing –Bloomberg
“A surging dollar and a capital flight from emerging markets may lead to another ‘major’ financial crisis, investor George Soros said, warning the European Union that it’s facing an imminent existential threat. The ‘termination’ of the nuclear deal with Iran and the ‘destruction’ of the transatlantic alliance between the EU and the U.S. are ‘bound to have a negative effect on the European economy and cause other dislocations,’ including a devaluing of emerging-market currencies, Soros said in a speech in Paris on Tuesday. ‘We may be heading for another major financial crisis.’.…’Everything that could go wrong has gone wrong,’ he said, citing the refugee crisis and austerity policies that catapulted populists into power, as well as ‘territorial disintegration’ exemplified by Brexit. ‘It is no longer a figure of speech to say that Europe is in existential danger; it is the harsh reality,’ he said. Soros’s proposed remedy for some of the ills facing Europe is an EU-funded Marshall Plan for Africa, worth about 30 billion euros ($35 billion) a year, which would ease migratory pressures to the continent.”
He may say this above but I still maintain he wants more terrorists exported to the EU….Admin
California Pensions on the Chopping Block Says Gov. Brown
Study: Some public pensions funds could run dry in downturn –CBS News
“Many pension funds for public workers already owe far more in retirement benefits than they have in the bank, and the problem will only grow worse if the economy slows down, according to a report released last week. The study from The Pew Charitable Trusts found that the New Jersey and Kentucky public pension funds are in such perilous shape that they risk running dry. ‘Even after eight years of economic recovery – eight straight years of stock market gains – the public pension plans are more vulnerable than they’ve ever been to the next recession,’ researcher Greg Mennis said in an interview….Notably absent from the report was California, which has the two largest public pension funds in the nation….California Gov. Jerry Brown suggested earlier this year that when a recession hits, pensions ‘will be on the chopping block.'”