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Marianne O, CFA's avatar

Thank you for this well-argued piece. I think the part of the private sector that will be hurt the most from prolonged high interest rate is the US corporate sector as refinancing will go up from $790bn this year to $1 trillion in 2025, and then 4+ trillion from 2026-2030, according to Goldman. So one way or another as more business closures and commercial real estate loans default, the Fed will have to lower interest rates.

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Oguz Erkan's avatar

The most basic explanation I have ever seen on how the bubbles are formed through short term debt cycles!

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