According To These 2 Charts, A Default Cycle In The US Is Now Inevitable

Tuesday, February 16, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
02/15/2016

“Over the past 100 years, when defaults have risen above 4%, they have typically continued to rise close to 10% (i.e. a full default cycle). This is because of the tendency for credit stress to become self-fuelling: a rise in expected defaults pushes up financing costs, which tips some marginal borrowers over the edge, further increasing defaults and so on.

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