Moody's Warns of Worst Corporate Default Rate since WWII

[girl gone mad]

From http://www.calculatedriskblog.com">Calculated Risk:

Moody's Warns of Worst Corporate Default Rate since WWII

From Reuters: Moody's downgraded $1.76 trln U.S. corp debt in Q1

... Moody's Investors Service downgrading an estimated $1.76 trillion of debt, a record high ...

The downgrades included a record number to the lowest rating categories, signaling the approach of the worst defaults since at least World War Two ...

"The most prominent new driving force behind credit rating reductions would be deterioration of commercial real estate," (Moody's chief economist John Lonski) said. ...

Moody's has forecast that the U.S. default rate will peak around 14.5 percent in November.
emphasis added

Hopefully the bank stress tests have all these defaults factored in ...

[truedelphi]

1. Can I ask a question: Are there any bank stress tests? And if so, who will be

Doing them?

[MrPerson]

3. Tim Russert's doctor.

[truedelphi]

5. Heh. Heh. n/t

[dixiegrrrrl]

8. According to an NPR story, FDIC hired a ton of CPA types a few months ago

and trained them, then has sent them out into the country to do bank audits.
So far, 21 banks have been taken over, in past 3 months.
That is compared to the total of 24 banks that went belly up in all of 2008, and the 3-4 total for 2007.

[Make7]

2. Heckuva job, Moody's. ( n/t )

[lapfog_1]

4. Everyone that works for Moody's should be jailed...

and their credit ratings downgraded.

Moody's (and similar firms) are in no small part responsible for the financial debacle.

[wuvuj]

6. And S&P?

But you NEVER hear anything about those "AAA" ratings...guess they had a legal clause protecting them?

[LeftHandPath]

7. Corporate defaults?

In our Bailout Nation?

No way. I thought that what tax payers were for, to subsidize corporate profits and increase executive compensation.

Just give these guys the tax payer ATM card and let them take whatever they need.