Economist Podcasts Loan behold: a global-economy danger
Mar 26, 2019
In this insightful discussion, Henry Kerr, Editor at The Economist, unveils the troubling trends in corporate debt and its looming risks over the global economy. Guy Scriven, a Correspondent focused on Southeast Asia, sheds light on the alarming surge of methamphetamine use in the region, detailing its causes and far-reaching consequences. They also delve into Slovakia's political scene, highlighting the rise of an anti-corruption candidate as she navigates a landscape marred by scandals and extremism. A riveting exploration of interconnected crises!
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Corporate Debt Concerns
- Economists are worried about rising corporate debt, similar to the mortgage debt crisis of 2007.
- A sizable chunk of this debt is held by companies considered bad credit risks.
Economic Strength and Risks
- The American economy appears strong, but so it did before 2007's crisis.
- The 2007 collapse was triggered by subprime mortgages given to those unable to repay.
Risky Corporate Debt
- While overall corporate debt might not be alarming, $1 trillion is held by weak companies.
- This amount is comparable to the subprime mortgage debt that triggered the 2007 crisis.