European Tribune - Comments - Europe Is (not) Doomed, by default

Europe Is (not) Doomed, by default | 6 comments (6 topical, editorial, 0 hidden)

Re: Europe Is (not) Doomed, by default (4.00 / 3)

That's an interesting graph. But, I am also curious about the Sep 06 - Dec 07 period: why was Europe's corporate default rate higher then, and why the drop at the end of it?

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 7th, 2009 at 12:59:39 PM EST

Re: Europe Is (not) Doomed, by default (none / 1)

Oh, and where is the tip jar?

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 7th, 2009 at 12:59:55 PM EST
[ Parent ]

The graph does not show long enough (4.00 / 5)

periods, but I suspect that the 06-07 is the normal rate in good economic times, and the lower rate after that (and in the US) is artificially lowered by all the crazy debt companies could borrow at that time ("covenant-lite" debt, "payment-in-kind" clauses) which allowed them to refinance even when in trouble, and to delay formal default even when things were going badly.

In other words, at that time, problems could be pushed further into the future thanks to easy debt.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Jul 7th, 2009 at 01:57:42 PM EST
[ Parent ]

Europe Is (not) Doomed, by default | 6 comments (6 topical, 0 editorial, 0 hidden)

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