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Related: About this forumWe’re in the Early Stages of Largest Debt Default in US History
By Porter Stansberry, Daily Wealth:
We are in the early stages of a great debt default the largest in U.S. history.
We know roughly the size and scope of the coming default wave because we know the history of the U.S. corporate debt market. As the sizes of corporate bond deals have grown over time, each wave of defaults has led to bigger and bigger defaults. Heres the pattern.
Default rates on speculative bonds are normally less than 5%. That means less than 5% of noninvestment-grade, U.S. corporate debt defaults in a year. But when the rate breaks above that threshold, it goes through a three- to four-year period of rising, peaking, and then normalizing defaults. This is the normal credit cycle. Its part of a healthy capitalistic economy, where entrepreneurs have access to capital and frequently go bankrupt.
If youll look back through recent years, you can see this cycle clearly
In 1990, default rates jumped from around 4% to more than 8%. The next year (1991), default rates peaked at more than 11%. Then default rates began to decline, reaching 6% in 1992. By 1993, the crisis was over and default rates normalized at 2.5%. Around $50 billion in corporate debt went into default during this cycle of distress. ................(more)
http://wolfstreet.com/2015/11/10/were-in-the-early-stages-of-largest-debt-default-in-us-history/
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We’re in the Early Stages of Largest Debt Default in US History (Original Post)
marmar
Nov 2015
OP
Verizon is in big time trouble and time they can get out of it with a BIG RIF right now.
LiberalArkie
Nov 2015
#2
LiberalArkie
(15,707 posts)1. As one of the comments said "Time to stock up with pop corn and beer"
LiberalArkie
(15,707 posts)2. Verizon is in big time trouble and time they can get out of it with a BIG RIF right now.
GeorgeGist
(25,315 posts)3. That some sick system ...
Its part of a healthy capitalistic economy, where entrepreneurs have access to capital and frequently go bankrupt.