BANKING: Shaky Mountain of Debt

To pay soaring energy costs, many Third World countries have been forced to borrow voraciously from big banks, notably in the U.S. Now, that rising mountain of debt is casting an ominous shadow across the international banking scene. A growing number of monetary experts, bank regulators and economists are concerned about the ability of some less developed countries (LDCS) to pay off. They worry that a series of defaults could severely jolt the banking systems of the U.S. and other major lending countries—and perhaps imperil the Western economies.

This concern is voiced especially sharply by Yale Professor...

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