Stock market crash: How coronavirus sell-off causes next credit crisis - Business Insider

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'Much worse than 2008': An expert who foresaw the dot-com crash warns the stock market's recent turmoil has kicked off another full-blown financial crisis

This milestone and several other big market moves did not escape, a global strategist at Societe Generale who anticipated the dot-com bust and is well-known for his bearish views.

"This time around things are much, much worse than 2008, particularly as the whole economy effectively cantilevers off multiple financial market bubbles," Edwards said in a recent client note. Credit investors are already on notice. The spreads between yields on Treasuries and junk bonds have widened to 475 basis points from 403 since the start of February — the biggest jump since Dec. 2018 — according to the ICE/BofA high yield index.

He said the Fed's continual interventions in periods of market turmoil have kept corporate bond spreads low, warded off defaults, and allowed companies to continue borrowing in excess. These over-indebted companies are now the vulnerable to an economic slowdown that hurts their cashflows.

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Convenient in an election year.

Well I mean yeah,it’s not so much the virus that’s gonna cause it directly.But those who are really really worried about this and anxious of the outcome in the coming months. I live in Nova Scotia,Canada no reports yet.And we’re running low/out of toilet paper hand soap and more!

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