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Zero Hedge — Goldman: The Default Cycle Has Started

Summary:
Goldman writes this morning that with businesses shuttered and job losses mounting rapidly, "there is growing concern over the ability of borrowers to service their debt obligations and the resulting risks to financial stability." In response, Goldman "assesses the likely scale of economy-wide credit losses, the exposure of creditors to those losses, and the potential risks to financial stability and the banking sector" to conclude that "rising bankruptcies and delinquencies suggest the default cycle has started."... It didn't take a crystal ball. Without a swift V-shaped recovery, this could get ugly, giving "domino effect" new meaning. Zero HedgeGoldman: The Default Cycle Has StartedTyler Durden

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Goldman writes this morning that with businesses shuttered and job losses mounting rapidly, "there is growing concern over the ability of borrowers to service their debt obligations and the resulting risks to financial stability."
In response, Goldman "assesses the likely scale of economy-wide credit losses, the exposure of creditors to those losses, and the potential risks to financial stability and the banking sector" to conclude that "rising bankruptcies and delinquencies suggest the default cycle has started."...
It didn't take a crystal ball. Without a swift V-shaped recovery, this could get ugly, giving "domino effect" new meaning.

Zero Hedge
Goldman: The Default Cycle Has Started
Tyler Durden
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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