There was a new black day in the world’s stock markets, the new coronavirusets of the characters. The central banks of the united states, Japan, and the united kingdom have in the past reduced rates of interest, in order to reassure investors, with poor results. The ECB decided on Thursday not to move in the interest rate, which is already a minus of 0.5 per cent. The stimulus will be in place through the increase in bond purchases and a new program of cheap loans to banks, which are expected to spill over into the business world.
a significantly weaker global economic growth this year, and so far, it appears no end to the coronasmittan. The question is whether it also is a toxic dog, is buried in the credit markets.
Since the financial crisis, the private-sector loan, not the government, which has been cleared.
The global financial crisis more than a decade ago, in the united states. Bad loans fortplantade and led to a global meltdown of the banks and financial institutions. The central banks of the slaughtered, interest rates and started to buy the bonds. States of america, and therefore, the taxpayers had to take care of the rest of the rescue operation.
it was at a normal level again. It turned out to be a problem, as the rate of inflation does not even have wanted to take the momentum. In most of the countries, interest rates remain around zero, and often below it.
The supported state of the economy. In many states, it was difficult to reduce the mountain of debt built up during the crisis, but the interest was low.
an opportunity has now become a threat. Cheap loans were used to expand the business or to compensate for a lack of profitability.
the Debt of the world was up to in the record of 322 per cent of gdp in the third quarter of last year, according to the Institute of International Finance. And since the financial crisis, the private-sector loan, not the government, which has been cleared.
the Swedish-listed company still seems to be very good, but in the US, for example, has the credit expansion has been excessive. It giants such as Google and Apple are swimming in cash, while in the more traditional sectors will become increasingly full of the loan. Meanwhile, the credit quality of corporate bonds has also fallen.
all over the world, hiding themselves in it, in the worst case, the seed of a new world.
the Covid-19, has already had a great effect on the supply of and demand for goods. The level of economic activity in China has fallen dramatically, with serious repercussions on the international supply chain. Italy, the eurozone’s third-largest in the country, is sitting in the quarantine. And how is the united states?
in the the profits out. The banks want their money back. Highly leveraged firms may be forced to restructure their debt and cut jobs. As consumption and investment, reducing at the same time the cycle of time.
No, this scenario is a given. However, the risk to say something about the mess the virus has been created in the world. The politicians and the central banks can’t provide.
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