Economy
Related: About this forum30 Reasons Why Stocks May Fall Further
https://seekingalpha.com/article/4374997-30-reasons-why-stocks-may-fall
empedocles
(15,751 posts)BlueWavePsych
(2,640 posts)Warpy
(111,329 posts)because too many large corporations are in an untenable position right now, offered easy credit last spring, they swamped themselves with debt and used it mostly to buy back their own stock to try to pump the prices. Exxon has been delisted, it is now rated as junk because of its high debt load and poor earnings. A lot of other big companies are very likely to follow them off the boards. They can't dump their stock to lower their debt load because that will crash the price and the executives and major shareholders will hear the wolf at the door. Their earnings aren't adequate to pay down the debt and pay a token dividend and if they don't do the latter, their small shareholders will start to dump stock to make ends meet, and that will crash the price.
I honestly don't see any way out of this corporate debt bomb and when it goes off, it will take nearly everything with it.
Debt is toxic. Greedheads forgot all about that.