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In other words, higher nominal debt raises real volatility, increases financial fragility and reduces average growth.But surely, the public sector can step in and take up the slack?
But the build-up of debt raises the risk of a far more violent crisis and recession especially if, as now, there is little room for central banks to cut interest rates.
RIFTS IN THE BUSINESS LOBBY | The United States Chamber of Commerce, the powerful industry group, is trying to retain its "influence and swagger" after a string of political losses, and as another group, the Campaign to Fix the Debt, raises its profile, The New York Times reports.
In other words, stock options have created a huge incentive for firms' managers to borrow in order to buy back equity which is not at all the same as looking after shareholders' long-term interests.As well as raising fundamental questions about the ownership of companies in the long term, corporate America's growing debt raises concerns about their health in the short term.
But issuing debt raises a whole additional level of complication.
It already faces steep competition from Uber, which has far more cash on hand thanks to a series of monster equity and debt raises.
Similar(54)
Most of that went on debt raising, but mergers and acquisitions contributed too.
Ratings agencies will downgrade banks' debt, raising their funding costs, if they see the bill as reducing government support.
The group rallies to pay down his debt, raising money by working as celebrity impersonators at a bar mitzvah.
London experienced its first emerging-market boom, with debt raised on behalf of the newly formed governments of Brazil, Colombia, Mexico and Guatemala.
Investigators believe that as much as $6bn of the $13bn of debt raised by the fund went missing.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com