The New CS Board

[jumanji0881]

Gary Dorsch: “Hundreds of Billions” in Defaults if Commodity Crash Continues : http://www.financialsense.com/contributors/gary-dorsch/billions-defaults-commodity-crash

My comment: The shale producers will be the first to fall and very soon.

Excerpt:
Major Defaults Coming if Commodity Prices Stay Weak

“We're talking about hundreds of billions of dollars that could be potentially defaulted on if commodity prices remain weak. Whereas we all remember that Lehman Brothers defaulted on about $360 billion of debt and preferred stock and that triggered a massive collapse in the world markets, we're looking at something possibly even larger than that. This also now goes even further if we look at the emerging nations, which now make up about 52% of the world economy. Especially those in Latin America--they are all pretty much dependent on commodity exports and we are seeing their currencies dropping quite dramatically… There's about $18 trillion of debt by corporations in the emerging world. Most of that debt is in China but still, as far as emerging companies in Latin America, they are now being pushed to the brink.”