In the News (from Market Watch): “Hong Kong chief flags ‘financial protectionism’ ” The head of the Hong Kong Monetary Authority said yesterday there was a risk that “financial protectionism” could spread globally, triggering a second wave of financial turmoil.
In the News (from Financial Times): “S&P forecasts 200 defaults” “About 200 US junk-rated companies are likely to default this year, according to Standard & Poor’s, affecting almost $350bn worth of debt and adding impetus to alternatives to bankruptcy, such as distressed debt exchanges… “We expect nearly 200 speculative-grade companies to encounter some form of financial distress, leading to default in 2009,” S&P said.
“Currently, we have more than 180 companies rated B-minus or below with negative outlooks. That is where we expect many of the defaults will occur. Among the biggest companies at risk are Harrah’s Entertainment, Ford Motor and Claire’s Stores in the US and NXP and Ineos in Europe.”
My Comment: The crisis is caused by our egoistic relationships; therefore it won’t go away until we correct our relationships. If we don’t do this, the crisis will keep getting worse due to our constantly growing egoism (Reshimot), like a disease that remains neglected.