Debt is higher than before the global financial crisis, making the world vulnerable to economic and market shocks, S&P Global Ratings has warned.Emerging markets now account for 31pc of global credit, more than double the proportion in 2008The debt-to-GDP ratio of 234 per cent in June 2018 was considerably higher than 208 per cent in 2008.
In absolute terms, the US led the increase in government debt, with an extra $US10.6 trillion in borrowings. China was next at $US5 trillion, and the eurozone borrowed $US2.8 trillion more. "Emerging markets now contribute 31 per cent of global credit, compared to 15 per cent in June 2008. This was largely driven by China," S&P noted.
Australia was lucky and spared a housing crash during the GFC ...now it could be catch up time ...
No, worse Auspol
mikejanda GladysB JoshFrydenberg Add to the increased debt burden the coming US shale oil peak and we'll be getting another 2008/09 event
Does the equation change when official interest rates dropped 4% in 7 months in 2008 for GFC, but no room to move this time?
Yeah this started the day that Kevin Krud & Wayne Zero Surplus's panicked & blew the budget for political reasons & then Julia Lizard promised us NDIS & the rest with no way to pay for it. auspol
If (heaven forbid) billshortenmp gets up, it’s gonna be a debt catastrophe. Leftards never change their spots and this time there’s no $26B surplus to plunder. Could save a billion.
We'll just keep this one for a later (or sooner) date...
yeah, bit late on this one
You bet your sweet bibby it is .... Can you say GFC ?
Actually, expect 2008 and worse.