Too Much Debt, Too Much Capacity (Mal-Investment), Then Inevitable Bust

Too Much Debt, Too Much Capacity (Mal-Investment), Then Inevitable Bust The Western banks that financed commodity production are insolvent, though few yet realize it. Like the flawed analysis of the CDO market in 2007 the conventional view is that the subordinated lenders may be in trouble, but the senior banks with the senior debt are safe.