Michael Roberts Blog 02-10-2023
Hiding in the shadows – Michael Roberts Blog (wordpress.com)
The cost of borrowing to invest or consume is reaching record levels. (..)
This record cost of borrowing in real terms has already caused a mini-banking crisis in the US, with several smaller banks hitting the dust. And it has led to a batch of governments in so-called emerging economies to default on their loan obligations to creditors, both state and private, in the rich Western economies. And more are set to join the current defaulters.
But the other spillover from this ‘liquidity squeeze’ is the increasing risk of a new meltdown in financial markets, not dissimilar from the collapse in mortgage and speculative in the global financial crash of 2008. The financial ‘regulators are getting worried. (..)
2023-10-08
