Banks are Going to Drown in an Ocean of Defaults

MOST of these businesses owe lots of money to the banks, whether it’s a small business working line, or the $34 billion in debt that American Airlines owes. So the defaults are going to be massive.
On top of that, millions of people are going to lose their jobs and be unable to make payments on their credit card debt, auto loans, and even mortgages.
Again, there’s $250 trillion in global debt right now. Total bank capital worldwide is less than $10 trillion.
So if the coming defaults trigger a mere 4% loss in total debt, it will exceed the entirety of global bank capital.
And this doesn’t even take into consideration the impact of the $1 QUADRILLION derivatives exposure.

via Banks are Going to Drown in an Ocean of Defaults – Astute News