Credit crunch could make 2008 look like ‘child’s play’

Categories: Big picture
Published on: March 20, 2020

The Guardian / Martin Farrer / 20 March 2020

A worldwide credit crunch triggered by the coronavirus will set in motion a wave of corporate bankruptcies that will make the global financial crisis look like “child’s play”, investors have warned.

With the world’s most advanced economies all entering a shutdown that could last months, companies that have gorged on cheap money for the past decade face going out of business thanks to a huge spike in borrowing costs on international money markets.

The sudden loss of revenue faced by airlines, tourism-related businesses and carmakers make them extremely vulnerable, ratings agencies have said, with parts of the energy sector also at risk.

[ FULL ARTICLE ]