John Rubino--Look Out Below: The Junk Bond Market Is Imploding! #2906
Dollar Collapse
English - December 14, 2015 00:00 - 21 minutes - 18.8 MB - ★★★★★ - 11 ratingsNews gold silver global financial crisis austrian economics Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: John Rubino--Is The Fed Is The Hand Of God? #2896
John writes, "For a while there, companies deemed to be highly risky were nonetheless able to borrow money for less than 6%. And borrow they did. Frackers, ultra-high-leverage retail chains and various other close-to-the-edge entities slurped up trillions from yield-starved investors who had forgotten about the other side of the risk/return equation.
That this hasn’t worked out so well is not much of a surprise. But the speed with which it has gone bad is still breathtaking. The following chart from Bloomberg illustrates just how fast an illogical market can be brought back to reality."