Quadrangle‘s Steve Rattner sits down with the WSJ’s Dennis Berman at the DJ Media conference, and adds more fuel to the “could-see-a-recession” bonfire. Paraphrasing:
We had irrational exuberance re: debt. That’s over, and now we’re in a third inning of a correction. There are going to be defaults. Idon’t know which ones – if I did i’d be shorting their bonds. Historical rate of defaults is 4% and we’re nowhere near that yet.
I don’t know if we’re going into a recession or not. But we’re “clearly going into a period of diminished growth.” The economic cycle is clearly slowing down, and that could certainly affect consumer spending, which would affect advertising, so for companies that depend on advertising, they could be going through a difficult patch.