Mood Killer: Moody’s Edition
Well, readers. There have been a lot of goofy posts over at Keyser’s Lair recently, with Keyser laughing in horror as the politicians in Washington seem set to take a bad situation and to do their damnedest to make it worse to the greatest extent that they can. So, just to bring us back to the astonishing reality of how bad things may get, Keyser presents this little piece of prophecy:
In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody’s said it anticipated a tidal wave of defaults was approaching.
It said that in the coming months more than 15pc of speculative-grade bonds and loans – all but the most highly-rated – would default on their debts.This peak is even higher than the peak reached in 1933, when bank after bank throughout America was collapsing, taking hoards of other companies with them. Back then, the default rate peaked at 15.4pc; moreover these companies were former investment grade issuers regarded as more reliable credit prospects than their contemporary counterparts.
Keyser’s readers may remember that Keyser has noted in the past that after the stock market crash in the fall of 1929, there was some respite until things really started falling apart in the spring of 1930 and didn’t stop for three years.
Keyser has recently remarked that he’s tired of winter and wants spring to arrive finally. If the debacle laid out above is what awaits us, maybe it would be better if spring doesn’t come. However March comes in this weekend, it may go out like a murderous lion.
[This rant was overheard recently at Keyser's Lair. Boy, that was some crazy bitch shrieking about who knows what. Her name was Casey or Cassy or something like that.]
