The Red Ponzi Leads The Way: First The Virus, Next The Shutdown, Then The Defaults

A global consumer default wave is just getting started in China

As Covid-19 works its way through the rest of Asia, Europe and the Americas — forcing countries into lockdown, driving up unemployment and pummeling small-business owners — analysts say it’s only a matter of time before stretched households globally start to default on their loans.  The early indicators from China aren’t pretty. Overdue credit-card debt swelled last month by about 50% from a year earlier, according to executives at two banks who asked not to be named discussing internal figures.

 

 

h/t davidstockmans