Lost amid the buzz on the president’s budget was a piece of extremely bad news at home and abroad, if the predictors at Moody’s are correct.
Budget this, budget that. Yes, Barack Obama’s budget is a historic event. But his job keeps getting tougher and tougher. From yesterday’s Wall Street Journal, “Moody’s: Worse to Come on Subprime”:In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody’s said it anticipated a tidal wave of defaults was approaching….
This peak is even higher than the peak reached in 1933, when bank after bank throughout America was collapsing, taking hoards of other companies with them….
The report traced the health of the bond market all the way back to the 1920s, and finds that the threat of companies defaulting is more stark now than at any point in that stretch of time.