The Looming Bank Collapse?


We’ve been blowing economic bubbles since the 1990s. Corporate borrowing to buy back stock and make the executive options soar was a big part of the latest part of the bubble.

(From The Atlantic)

The Bank for International Settlements, which helps central banks pursue financial stability, has estimated the overall size of the CDO (collateralized debt obligation) market in 2007 at $640 billion; it estimated the overall size of the CLO (collateralized loan obligation) market in 2018 at $750 billion… Just as easy mortgages fueled economic growth in the 2000s, cheap corporate debt has done so in the past decade, and many companies have binged on it.

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