The Great Default Cycle Has Started

"This default cycle has now begun and we're going to be seeing more defaults in the near future and the biggest reason for this is not surprisingly the higher interest rates."

"if interest rates stay higher for longer which is what they predict that means that we would continue to see an uptick in credit card defaults and autoone defaults which would hurt the general economy."

"in the coming 12 to 24 months as we start to see more of this commercial real estate debt come due for readjusting if you are an office landlord and your building is not producing much revenue but then your costs rise not just because of inflation but because your debt servicing costs are higher because interest rates are higher that means now you're not making enough Revenue as it is but now your expenses go up which could lead to more default issues."

"if we're starting to see less money in the economy because the Federal Reserve Bank is reducing their balance sheet they're trying to shrink the amount of dollars in circulation to fight inflation that can make borrowing a little bit more difficult because if there's less dollars out there it could be more difficult for corporations to go out and find more dollars."

"we're entering an environment with tighter credit conditions meaning it'll be more difficult for people and corporations to go out and borrow money because credit is tighter there's less dollars out there."

"if they keep interest rates higher for longer then that creates more debt investment opportunities."