Global Debt Skyrockets – Time to Worry? Web Global debt is up 50% over the past decade, but S&P still says next crisis won’t be as bad
: Jeff Cox : CNBC : March 12, 2019
The Great Recession was caused by, among other things, massive debt related to housing. At the time, rating agencies thought the debt was no big deal.
Debt has once again taken off, with China and the US leading the way. Why should you be worried? Because, once again, the rating agencies aren’t worried.
SummaryCompanies, governments, and households increased their combined debt load by 50 percent in the 10 years following the financial crisis, S&P Global Ratings said Tuesday.
The surge represents a 50 percent increase that the rating firms nonetheless said does not pose the same level of systemic risk.
One area the firm highlighted was corporate debt and the rise of financing given to lower-quality borrowers.