![]() 3 This time, it’s not households people are talking about, but corporations. So it’s rather unnerving to find the word “debt” crawling back into the discussion of late. 1 Now, with the current economic recovery extending to nearly 11 years-the second-longest expansion on record 2-it’s natural for nervous observers to be alert for signals that might presage the next recession. ![]() Thankfully, although battered and very bruised, the US economy managed to find its way through the Great Recession thanks largely to a host of policy supports, including some “creative” central banking. ![]() The dollar value of US corporate debt is on the rise-but are corporations borrowing too much, or is it just a sign of economic expansion? A look at what happened in previous economic cycles offers clues for how to interpret corporations’ borrowing behavior.īack in 2005–2006, if anyone had examined the path of mortgage debt in the United States-bloated with subprime mortgages and “alt-as”-maybe, just maybe, it would have given a whiff of the unpleasant things about to happen. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |