Hypothetical, but worth considering the numbers.
The conditions are in place for a credit crunch owing to corporate debt if things don't turn around and governments don't step in. The situation is tenuous, and the US government is looking like it is turning back toward debt and deficit phobia based on Biden's economic team and the traditional GOP fiscal conservatism in Democratic administrations, which will be a factor unless Democrats take the US Senate.
Michael Roberts Blog — blogging from a marxist economist
A credit crash ahead?
Michael Roberts
We’re already in a credit contraction look at the data
ReplyDelete“On the contrary, the stock and bond markets of the major countries are at record highs. The reason is clear. The response of the key national monetary institutions and governments was to inject trillions of money/credit into their economies to bolster up the banks, major companies and smaller ones; as well as pay checks for millions of unemployed and/or laid off workers. The size of this ‘largesse’, financed by the ‘printing’ of money by central banks, is unprecedented in the history of modern capitalism.”
ReplyDeleteHardly any of the statements made here are true..,
Bonds are not at record highs, banks are nowhere near record highs, CB reserves ie “printing money!”are nowhere near record highs, ... indexes are at record highs I’ll give him that one.., not much else...,
Can never have a credit crash when you need one...
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