Instability in Capitalist Economies and a Better Way to Think About Credit Risk
Instability in capitalist economies comes from the quest for profit. And that has implications for credit ratings that are often ignored.
Read more...Category Archives: Credit markets
How Private Credit Rating Agencies Reinforce Global Economic Instability—and What We Can Do About It
A look at a fundamental point of failure in our financial system, rating agencies, and potential remedies.
Read more...Regulator Warns Commercial Real Estate Bubble Is Biggest US Bank Risk
By the time regulators start warning of risk, as the OCC is now in commercial real estate, it’s often too late.
Read more...Political and Financial Contagion from the Italian Banking Crisis: Italy’s Exit?
Eurocrat rigidity about half-baked, never-tested bail in rules could turn an Italian banking crisis into a full bore financial and political meltdown.
Read more...Wolf Richter: The Big Unravel – US Commercial Bankruptcies Skyrocket
Commercial bankruptcies rose at a much bigger clip in early 2016 than in recent years. How worried should we be?
Read more...Unfounded Debt Fears Block Economic Recovery
Debt scaremongering as voodoo economics.
Read more...Puerto Rico ‘Rescue’ Bill to Reinforce Colonial Relationship with US
Not surprisingly. Puerto Rico is about to get a big dose of austerity…..which Latvia-style, will push more people with skills to leave.
Read more...Rebalancing, Wealth Transfers, and the Growth of Chinese Debt
By Michael Pettis, a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University’s Guanghua School of Management. Cross posted from China Financial Markets. For the past ten years much of what I have written about debt in China was aimed mainly at trying to convince analysts and policymakers […]
Read more...The Sterling Depreciation of 2007-2008 and Its Implications for Brexit
The unexpected impact of the fall in sterling in 2007-2008 suggests Brexit could produce a drastic drop in UK living standards.
Read more...Brexit: The Crisis Begins
The Brexit vote was a stunning repudiation of neoliberalism and austerity. But what comes next?
Read more...Michael Hudson: Socrates on Debt and Ibn Khaldun on the Cyclical Rise and Fall of Societies
Socrates described how the use of debt by the elite to strip the lower orders of their property sets up revolutions.
Read more...Enforcement of Puerto Rico’s Colonial Debt Pushes Out Young Workers
Yves here. This post corrects some of the misleading accounts of the history of the Puerto Rico’s debt crisis and describes how the neoliberal remedy is producing an Ireland-style exodus of the young. By José A. Laguarta Ramírez. Originally published at Triple Crisis At least 23 of the 49 people killed in the mass shooting […]
Read more...How Financial Crises Produce Political Polarization
Financial crises move the struggles between debtors and creditors into the political sphere.
Read more...North Carolina Threatens to Cancel Toll Road Project, Showing Political Risk of Infrastructure Deals
North Carolina’s House has voted to exit a toll road deal despite high expected cancellation costs.
Read more...Chaos Theory, Shocks, and Fragility, Australia and Elsewhere
Australia and other countries had the opportunity to reduce financial fragility. They may soon discover the cost of doing too little.
Read more...