Howie Hubler's Ghost is still haunting Morgan Stanley it seems... 3 Trillion in BBB just waiting to be downgraded, with complete annihilation of Credit Markets issuing, Moody's fine for this recession should well exceed 1 Billion for allowing monkey business of this level... I wonder what the Q-10's for last quarter will reveal once they are available, I can only assume what Q1 2019 bonds results will be ? Campbell Soup Co. The company borrowed more than $6 billion in 2018 to buy Snyder’s-Lance Inc., the maker of pretzels and other snacks. The acquisition more than doubled the company’s debt load to nearly $10 billion, according to data compiled by Bloomberg. The company now has more than 5 times as much debt as earnings before interest, taxes, depreciation and amortization, a measure known as Ebitda, according to Moody’s. While ratings firms evaluate a number of criteria, a company with leverage that high would be considered junk if judged on that metric alone. For example, two Campbell Soup competitors, Pinnacle Foods Inc. and Lamb Weston Holdings Inc., have lower leverage and are rated below investment-grade. But Moody’s and S&P kept Campbell at investment-grade, saying they expected the merged food company to generate enough revenue to pay down its debt quickly. Campbell’s plan to cut debt was cast into doubt shortly after the deal closed. In May 2018, the soup maker’s chief executive officer unexpectedly resigned, and the company forecast earnings well below analyst expectations. Facing a potential downgrade to junk, the company said it would pay down debt by selling assets it had spent years acquiring, including its international unit and its fresh-food business. https://www.bloomberg.com/graphics/2018-almost-junk-credit-ratings/ https://www.bnnbloomberg.ca/morgan-stanley-has-a-warning-about-a-potential-bbb-bond-bust-1.1169584 Very important read, it shows SP and Moody's are in on this scam!
Wonder how it all will end? Amazing economy that was built on insane debt levels. I am simple minded, can can it actually soft land?
Yes it can soft land. The key thing is to avoid runaway-<something>. Main danger: loss of reserve currency status. If currency reserve status is gone, the US is going to likely enter hyper inflation at some point.
It is not possible at this point for anything other then destruction in my opinion, just look at the numbers, and only reason it is not total destruction yet is cause of Moody's and SP's forgery, and at one point they will receive the order to start downgrades and boom... The systemic risk at hand is too big to have debt grow bigger. There is a clear plan across world Central Banks to reel in cycle and they did it on a snap, realizing levels of debt could collapse entire system so they had to put it in check. ECB just stopped massive QE rounds in Europe, Italy banks already failing, Italy was entering recession while being saved by QE for years, what happens next for them ? UK is gonna have Lehman on steroids with RMBS, there real estate industry is filled with subprime mortgages, it is nuts there, Germany too much debt, France anarchy and debt, Japan still in QE and failing, China is just done period... They have to let debt reach levels where it is not dangerous, letting steam out of the system Fitch sees 'sharp slowdown' worldwide In a report issued Tuesday, global credit ratings agency Fitch warned of "a sharp property price slowdown in 2019" around the world, with Canada's housing markets among the worst-performing https://www.huffingtonpost.ca/2019/01/15/home-sales-canada-december_a_23643053/
It's starting though. People are starting to trade in other currencies. No one trusts China or Russia though, maybe Euro. Although no one also trusts the Eurozone. So maybe Canada. But then you have Trudeau and his masturbation.
Haha Trudeau needs to go! His dad is a Canadian Icon tho... As long as Oil demand is high, US is good, why do you think US is constantly at war over Oil ? Anybody who ever tried to switch from Petro dollar got invaded or sanctioned, either or Electronic Vehicles is slowly bringing down Petro Dollar Status, within 30 years effect will be full blown... With IoT through Low Orbit Satellites, Oil won't even be needed in huge Cargo Boats, IoT and EV's will definitely change the amount of Oil consumption
Trudeau's Sr. saved one of my friend's family from Idi Amin by allowing in people from that area. This guy's parents saw their friends drowned in acid. I still remember the story they told me about escaping when I went to visit. Trudeau Jr plays dress up. Has to be a helluva time trying to live in daddy's shadow. Back to the USD. Yes, it will slowly lose reserve currency status. But who will gain it? A new crypto currency!