WSJ: With Corporate Debt at Record Levels, the Economy Better Keep Roaring…or Else

Corporate Debt Is Reaching Record Levels

“U.S. corporate debt has climbed to roughly 46% of GDP, the highest level on record. Observers worry that highly leveraged companies could pose a threat to the global economy, especially if growth slows and rates continue to rise.”

Wolf Richter Video: “How the Corporate Debt Bubble Will Crush Stocks”

“Corporate debt, after years of encouragement by the Fed via artificially low interest rates, has reached historic levels. Now even the Fed is worried about its handiwork. Many of these companies will default over the next few years. This is a cleansing process that is part of the business cycle – only this time, it’s so much larger ”

READ  The market is record short and the global economy is slowing again. Dumb money is going all in, no VIX, no Gold, no Bitcoin no USD, no hedges, nothing. Balls out, all in stocks.