News for hackers. Stuff that matters.

A comment on India’s banking system is flirting with a Lehman moment. Parent comment

Re:India’s banking system is flirting with a Lehman moment by kchoudhu on Saturday November 10, 2018 @06:04AM (#18420831)
When was the last time the US or the UK defaulted on their debt?

The credit rating system is necessarily bayesian, and EM markets all have their most recent defaults within the models' event horizons.

[ Parent | on HN ]
Re:India’s banking system is flirting with a Lehman moment by arcticbull on Saturday November 10, 2018 @12:55PM (#18422466)
USA: 1979, 1933, 1861 and 1790.

[1] https://www.theglobalist.com/a-brief-history-of-u-s-defaults...

[ Parent | on HN ]
Re:India’s banking system is flirting with a Lehman moment by tonyedgecombe on Saturday November 10, 2018 @07:15AM (#18421025)
The UK defaulted in the thirties although I think there were unusual circumstances and it was a debt to the US government.
[ Parent | on HN ]
Re:India’s banking system is flirting with a Lehman moment by kchoudhu on Saturday November 10, 2018 @11:03AM (#18421861)
Yeah, interallied debt to the US was linked to German reparations which stopped in 1932 (I think?). The US wasn't fussed about it...so I'm not sure it was a default.

The other one I can think of was the downgrade of the coupon on WW1 war bonds from 5% to 3.5%. Again, seemingly everyone agreed with this, so there is some debate over whether it was an actual default.

[ Parent | on HN ]