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| Re: Long term political and economic impacts of the pandemic (1714233) | |||
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Re: Long term political and economic impacts of the pandemic |
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Posted by Charles G on Sun Apr 5 18:49:24 2020, in response to Re: Long term political and economic impacts of the pandemic, posted by RockParkMan on Sun Apr 5 18:37:16 2020. I hear you, but I have also confessed to seeing inflation hiding around the corner many times before.The second and third-order economic effects are going to be massive and completely unforseen. Years of ultra-low interest rates have made borrowing a huge part of most businesses capital structure and operations. Suddenly the ability to make payments on all that debt is questionable. How do interest rates not go up in a high-risk environment? Not Fed interest rates, but the real interest rate charged by a capital provider to a creditor? And that has to get passed through with higher prices... |
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