Is a New Global Financial Crisis Looming?

Developing countries are over-leveraged with a corporate debt in access of 3 trillion dollars, as a result of low interest rates and lax monetary policies of the immediate past. The situation needs to be managed carefully and collectively, allowing for de-leveraging measures (including bankruptcies), particularly in China which already feels the credit crunch. Else, the situation could quickly get out of hand, with increasing sovereign debt spreads, bond firesales, and collapsing stock markets. HH