That’s interesting, not because it is a sad news to see recessionary waves pounding the greatest economies, US and China, but because two diametrically differently managed nations having a shared problem. One with transparency and semblance of accountability, and the other with regimented control of blankets to hide the truth and facts.
Obviously, we all know that the US and China alone are not the struggling economies. Several leading economies are in doll-drums. It will take time to recoup and get the luster back and running. While that is being done, humanity is going to leave a lot of mess and loan to clear for the posterity and the future. Several unanswered questions are answered in S&P Global reference (cited below), like How big is the problem? 2. What’s behind that? 3. Where are defaults hitting? 4. Has the government stepped in? 5. And more broadly? 6. How did we get here? 7. What’s the impact of rising defaults? 8. How does bankruptcy work in China?
Posterity will always remind us how precariously and irresponsibly we operated the present (than future).
Pandemics, and wars come with a tag, a very costly tag of lives, economy and destructions. Of course, new opportunities too emerge that mandates remodeling. However, the key denominator being a least footprint from covid – lives, morbidity or dollars.
Those emerging and surging ahead their economies, started way back, as part of design when the pandemic was just setting un, while deniers and nay sayers were still ringing thalis or calling out conspiracy theories or adopting the antiscience approach with herd immunity. Whereas, shortsighted China was grabbing land, sea and expanding its BRI ideology.
Today, Singapore, South Korea, Indonesia and several ‘Tiger Economies’ of the twentieth centuries are bouncing back. These ate the nations to watch, while others emulate their model their societies and restructure their economies.
Company defaults rise in China and US as global figure doubles