Lonestar1

Exactly How Bad Will It Get?

The reality should be worse than shown in this article. Defaults are across board. Of all fears in the market, default is the main one. Fear of defaults freezes business activities, which in turn results in large layoffs. Things are spiriling down. Here are some examples:
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Wholesalers now would rather hold the mechandise instead of distributing to retail chains and department stores for fear of not getting paid. The larger the retail chain, the more likely it will default on payment.
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Banks would not lend due to fear of defaults of counterparties. They are households and businesses.
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No liquidity in credit market is due to fear of defaults by issuers, & defaults by trading counterparties (hedge funds and other brokers, baks etc).