Corporate Debt: the Next Financial Meltdown Just Waiting to Happen

The same people who denied the existence of a systemic crisis in 2007 are now telling anyone who will listen that the financial markets are doing just fine, no danger of a meltdown. Sure, there were major losses on the stock markets in 2018, they  say, but each had its own specific cause, unrelated to the others. For example, the Dow Jones lost about 10%, but that was due to Donald Trump’s so-called “trade war” with China; London was down by 12.4%, but only as a result of Brexit uncertainties, while Frankfurt’s 18.3% drop had to do with problems in the auto industry and at Deutsche Bank, and Milan lost 16.5% because of the “populist” government in Rome. For the biggest drop of all — Athens with 24.7% — there was no obvious cause, so it was attributed it to a “contagion” efffect.Hier   weiterlesen