Bloomberg News: Stock Bear Market Will Get Whole Lot Worse When Credit Cracks

Article by Katherine Greifeld and Vildana Hajric in Bloomberg News

As crazy as it sounds, all the turmoil that’s ripped through Wall Street over the past week has still left debt markets in Corporate America relatively unscathed.

That’s bad news for stock dip-buyers hoping turmoil in the financial world will soon peak.

Now Goldman Sachs Group Inc. warns of a potential repricing of corporate bonds that risks adding fresh fuel to the stock rout, as current earnings estimates attach an “unjustifiably high probability” that the US economy will avoid a severe recession.

The bank’s warning looked prescient Tuesday, as another wave of .......

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