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Latin America debt default on horizon |
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Medclinician
V.I.P. Member Valued Member Since 2006 Joined: July 08 2009 Status: Offline Points: 23322 |
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Posted: May 01 2016 at 10:18pm |
One of the most foreboding things on possible U.S. economy crash is if Latin American countries default on their debts.
http://www.bloomberg.com/news/articles/2016-03-11/from-champs-to-chumps-latin-america-oil-giants-owe-275-billion There is no great sigh of relief even with oil prices near $45 a barrel. $40 is the break even point and compared to the soaring oil prices of several years ago, there is a great risk that Puerto Rico, Brazil, Argentina, and other oil rich countries could simply not pay their debts. Many U.S. banks have huge sums of money tied up in these countries, Bank of America not the least of them. An over all default to all but total many banks. In 2008 the highest price for a barrel of crude oil was $128.08. It was high for years before the recent nose dive to $26 a barrel in February. U.S. crude futures dropped as much as 5% on Thursday, driving prices below $27 for the second time in recent weeks. It settled at $26.21, the lowest point since 2003. That was the Apocalypse Now for oil and had it stayed there the stock markets around the world would probably have all crashed. Yet - nothing is fixed in terms of the huge debts owed to major banks from South America. It always amazes me of all the issues thrown around in the presidential campaigns the economy seems to rank behind whose daughter or wife is doing what versus medical care, the economy, and the stock market. Medclinician |
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"not if but when" the original Medclinician
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