Skip to main content

'The Curious Case Of The Missing Defaults' - Carmen Reinhart Fears What Happens Next - Zerohedge

Usually, a sudden stop in capital inflows sparks a currency crash, sometimes a banking crisis, and quite often a sovereign default. Why, then, has the worldwide incidence of sovereign defaults in emerging markets risen only modestly?
Perhaps the change is structural. But a more cautious interpretation of the missing defaults is that the protracted nature of the downturn in international conditions has yet to take its cumulative toll, or that lingering weaknesses will only become evident once the major central banks move further along in renormalizing their policy stances.
 

Source: 'The Curious Case Of The Missing Defaults' - Carmen Reinhart Fears What Happens Next

Comments

Popular posts from this blog

The gap has closed - Washington Post

Fitch: $9.7T of Neg Yielding Debt Despite Monetary Normalization

Fitch Ratings-New York-11 December 2017: The total amount of global negative-yielding sovereign debt remains at elevated levels despite the European Central Bank's (ECB) plan to reduce monthly asset purchases amid improving economic fundamentals in the Eurozone, according to Fitch Ratings. As of Dec. 4, 2017, there was $9.7 trillion of negative-yielding sovereign debt outstanding, up from $9.5 trillion on May 31, 2017 and $9.3 trillion one year ago. Fonte: Fitch: $9.7T of Neg Yielding Debt Despite Monetary Normalization