Global Debt Soars to $169 Trillion: Will We Ever Learn?

Ten years have passed since the 2008 subprime mortgage crisis, the worst financial panic since the Great Depression.  Now it seems that some of the lessons learned back then are being forgotten.  Growing debt burdens in emerging markets are igniting new fears of a crisis that could shake economies everywhere. This time, the debt is not mortgages or deficit spending.  The new crisis involves corporate debt and bonds. What is setting off alarms is the recent collapse of the Turkish lira, which has lost more than forty percent of its value.  Turkish banks and companies borrowed heavily over the past few years to finance infrastructure projects and even a mammoth cruise ship terminal.  The lira's collapse makes it hard to repay loans or bonds made in dollars and euros. Turkey is not alone in its dollar- and euro-delineated debt burden.  Similar loans and corporate bond issues can be found in Brazil,...(Read Full Article)

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