Saturday, August 10, 2019

today's question

Isn't there now, a whole bunch of "bad debt", on company books, that is currently being listed, as "assets" ?


 Most bad debt has some book value if there is any possibility that it can be collected. Then there is outright fraud claiming totally worthless junk is AAA rated liked the bundled mortgages under Bush which is probably much more common again with the orange fraudster in charge. 

The biggest risk comes from Trump having rolled bank bank reserve requirements which means if the default rate begins to climb the banks start dropping like flies and this cascades into other sectors as it did during the Bush Crash. There is also the dark money lending run by hedge funds that's probably over half of business lending.