The problem: Massive debt and shrinking liquidity.
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Corporate Defaults Would More Than Double Even In Mild Recession, S&P Global Warns
ZeroHedge, Nov 22, 2022 – Excerpts:
“The current pace of widening yields in secondary markets would continue, while consumption would contract,
forcing businesses to dig into their cash holdings to ride out a deeper recession.”
Authored by Katabella Roberts via The Epoch Times,
The rate of corporate defaults for companies in the United States could soar if the economy tips into a “shallow recession,” S&P Global analysts warned on Monday.
According to S&P Global Ratings, the default rate for American companies could reach 3.75 percent by September 2023 if the Federal Reserve’s hawkish policy of raising interest rates prompts a shallow or mild economic downturn.
In a far worse scenario in which a more serious economic downturn occurs, default rates could reach 6 percent, the highest since March 2021, analysts said.
“Much will depend on the length, breadth, and depth of a recession should one occur, and if the Fed will continue to raise rates through a recession,” the S&P analysts wrote on Monday.
“The current pace of widening yields in secondary markets would continue, while consumption would contract, forcing businesses to dig into their cash holdings to ride out a deeper recession.”
Elsewhere on Monday, Deutsche Bank said that default rates on U.S. leveraged loans – those made by banks to companies or individuals who have considerable amounts of debt – will hit a near-record high of 11.3 percent in 2024, while defaults on euro-leveraged loans will reach 7.1 percent.
Analysts at the bank said that the U.S. economy will likely slip into a recession in the second half of 2023, and companies will take a significant hit to their profit margins resulting in missed interest payments, and prompting increased default rates….
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The solution: Decentralized economy, debt elimination, main street America liquidity, economic liberty.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (5457 downloads)