THursday Aug 10 2023
I stand corrected, Moodys downgraded regional banks which added to the decline in Frost.
Problems mount in China which is registering official deflation. And it gets worse. China's debt in 2022 vecame three times its GDP. The US now has debt equal to its GDP and that it way too high.
The Fitch downgrade of US debt is explained in this chart.
At top government debt to GDP is projected to rise above 100%, eclipsing the worst extreme of WW II. This is hardly a WW II situation.
And this is happening as we come off the 39 year low i interest rates seen in March 2020. As the debt grows, higher interest rates cause debt service to take a larger share of the budget. I have read interest is already 15% of the US budget. YOU can see it is 3.4% of GDP, so 3.4% of expenditures produce to goods or services.
We Work shares trade at 13 cents down 99% since its 2021 IPO. It is hiring bankruptcy experts but that will not help, the move away from the office is permanent.
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