Companies must raise £28 trillion to finance 'wall' of debt

[MindMover]

Companies across the world face a "perfect storm" as they have to raise more than £25 trillion to finance an upcoming "wall" of debt.

Businesses will need to secure as much as £28.5 trillion to refinance old borrowings and fund new spending, raising major questions over the ability of the world economy to avoid a recession, according to a report from Standard & Poor's.

British companies will have to find between £220bn and £268bn of new financing to fund their growth plans on top of refinancing hundreds of billions of pounds more of existing debt, according to the ratings agency.

The scale of the refinancing required, as well as the amount of new debt companies must sell, could create what S&P described as a "perfect storm for credit markets".

The report continued: "Governments and banking regulators are now not as well placed to counter another perfect storm scenario given that they have already expended so much of their fiscal and monetary arsenal to mitigate the problems arising in recent years."

The consequences of this are already being felt in the rising cost of borrowing faced by everyone from the largest banks to homebuyers when taking on new debt or refinancing existing loans.

http://www.telegraph.co.uk/finance/financialcrisis/9258455/Companies-must-raise-28-trillion-to-finance-wall-of-debt.html

[abelenkpe]

1. Good luck with that

Just wipe it out

[MindMover]

2. We are all suffering to keep status quo for the 1%ers.....

the sooner the 99ers figure this out....the better.....

[dixiegrrrrl]

3. Insanity.

"need to secure as much as £28.5 trillion to refinance old borrowings"
that of course is debt

" and fund new spending"
that of course is also debt.

So it is like me using one credit card to pay off another credit card
because my income is only 1/10 of my total expenses and debt.
and very soon the interest owed alone is going to eat all the income itself.

Can you say..Ponzi?