Like a street preacher, Walter Schroeder, the retired founder of what is now the world’s fourth-largest bond-rating agency, is compelled to warn of a coming apocalypse. You needn’t worry unless you are attached to Newfoundland and Labrador. The terrible circumstances that Schroeder foresees call for that province’s imminent bankruptcy.
“Newfoundland and Labrador needs Ottawa’s help, and very soon, or it will be subjected to insolvency when the level of its fiscal problems becomes known,” Schroeder wrote in the Globe and Mail on Nov. 26. “The easiest call I’d ever have to make as a debt rater would be a Newfoundland bankruptcy. It’s a sure thing,” he told Financial Post Magazine around the same time.
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