'Emerging-market companies and governments .. ignoring the many lessons of history from the 1980s Latin American debt crisis, the 1990s Asian financial crisis and the 2000s Argentine default.''(Bloomberg) -- Emerging-market companies and governments straining to deal with the rising cost of borrowing in dollars face increasing pressure as a record slew of bonds come due.
Some $249 billion needs to be repaid or refinanced through next year, according to data compiled by Bloomberg. That’s a legacy of a decade-long debt binge during which emerging markets more than doubled their borrowing in dollars, ignoring the many lessons of history from the 1980s Latin American debt crisis, the 1990s Asian financial crisis and the 2000s Argentine default.
Even since the 2013 taper tantrum, the group’s dollar debt has climbed in excess of $1 trillion -- more than the combined size of the Mexican and Thai economies, Institute of International Finance data show.
..
China has far and away the most dollar debt coming due through next year among emerging markets. Though much of the debt is also owned by Chinese investors, strains have become clear in recent weeks, with some companies unable to issue at their preferred amounts and maturities, and others, unusually, marketing floating-rate notes.
Despite having defaulted in the early 2000s, Argentina has issued so much dollar debt that it ranks No. 4 on the list -- a testament in part to the impact that unprecedented U.S., European and Japanese monetary stimulus had in spurring a global hunt for yield since the 2007-09 financial crisis.
Turkey has the largest foreign debt load relative to gross domestic product, and perhaps not coincidentally has one of the worst-performing currencies against the dollar this year, down about 21 percent. Only Argentina’s peso has done worse among 24 emerging nations tracked by Bloomberg -- another country that ranks high on the debt metric.'
- Bloomberg,
Emerging-Market Stress Just Begun as Record Debt Wall Looms, May 23, 2018
'We are now officially in a tech bubble larger than March of 2000..''We are now officially in a tech bubble larger than March of 2000. The term unicorn in business parlance was created in 2013 by venture capitalist Aileen Lee. This mythical animal represented the statistical rarity of a start-up company valued at over $1 billion dollars. The term may not last much longer in the financial vernacular than many of the start-ups that were — wrongly — branded with it.'
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Silicon Valley tech bubble is larger than it was in 2000, and the end is coming, May 22, 2018
'If the EU refuses to change, if it refuses to listen to the concerns of its citizens..''Southern Europeans feel alone when it comes to dealing with unemployment and the refugees crisis.
"The days of the European Union are limited: It will take five or 10 years, but they are limited," Farage claimed.
If the EU refuses to change, if it refuses to listen to the concerns of its citizens, Farage could be proved correct.'
- CNN,
Italy's next government is Europe's next crisis, May 23, 2018
Context'..three decades of recurring boom and bust cycles..' - Doug Noland'..over time, debt stops stimulating growth..' - '..The mother of all bubbles exists and it is in the debt markets..''..we already observe the same combination of extreme valuations and divergent market internals that we observed at the 2000 and 2007 peaks..''..I think a worldwide debt default is likely in the next 10–12 years.'