Help, I am very afraid.

Total obliteration is not a good thing. Please take away my fear.

Of what am I afraid, you might ask.

I will tell you. I am afraid of ignorance. I am afraid of people in power being afraid. What really brought this on was:

A $1 Trillion Powder Keg Threatens the Corporate Bond Market

https://www.bloomberg.com/graphics/2018-almost-junk-credit-ratings/?srnd=fixed-income

“By one key measure, more than half of the acquiring companies pushed their leverage to levels typical of junk-rated peers. But those companies, which have almost $1 trillion of debt, have been allowed to maintain investment-grade ratings by Moody’s Investors Service and S&P Global Ratings.”

What set up the great recession? Improper ratings on debt underlying mortgage back securities.

The rating agencies are afraid to put truthful ratings on bonds. It would hurt business.

Please tell me they aren’t doing it again.

TEK