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Sovereign-bond yields are low because private demand for capital is weak.
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Mr. Dorer said that a drop to A is possible for MBIA, because its capital position is weaker.
Their capital ratios are weak: Commerzbank and HVB have tier-one capital equivalent to 6% (of risk-based assets) and 6.2%, and Dresdner Bank's is just 5.5%.
Especially when capital markets are weak this is important to allow investments in human capital (Calero et al. ( 2009 )).
The government is weak and doesn't control much territory beyond the capital.
This is weak.
– LED flash is weak.
The link is weak.
But raising more capital is difficult for weak banks that are not very profitable.
But, though it can explain why capital spending has been weak and interest rates have been low for the last three years, it cannot account for why capital expenditure has been insufficient to prevent rates from trending down for more than three decades.
Given that capital expenditures have been weak recently, some economists believe businesses will start spending more if Congress ends or at least delays the risk of severe fiscal tightening.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com