3 ms·
Sovereign defaults are very rare events outside of banana republics. It's not survivorship bias so much as it simply doesn't normally happen, despite the vast m
by p-e-w 3y ago
Sovereign defaults are very rare events outside of banana republics. It's not survivorship bias so much as it simply doesn't normally happen, despite the vast majority of advanced economies having been neck-deep in debt for a long, long time.
- Grimburger 3y agoAn average citizens quality of life has dramatically decreased nonetheless, default or not. > The currency has been devalued by 90% – still not enough to reflect its slide in full. Inflation is in triple digits. Public services have collapsed; without hiring a private generator, households can expect only an hour or so of power a day. Shortages of drinking water have contributed to disease outbreaks, including the first cholera cases for decades. Parents are sending their children to orphanages because they cannot feed them. A growing number of citizens have resorted to armed robbery as the only way to extract their own deposits (now vastly reduced in real terms) from banks when they desperately need to pay for basic services such as healthcare. The collapse of Lebanon, formerly known as the "Switzerland of the Middle East", has been described by Western media as one of the most devastating and worst financial recessions since at least the 19th century. https://en.wikipedia.org/wiki/Lebanese_liquidity_crisis https://en.wikipedia.org/wiki/Lebanese_liquidity_crisis