The Daily Double From Karl Deneger

The first leg of a daily double from our friend karl deneger. This is the simple facts on equities and debt. Corporations, he says, basically, never pay off their debt. And that's the problem you got here with the fed raising interest rates. A firm that is regarded as very well managed at berkshire hathaway has onehundred 20 billion dollars in debt. If the cost of arrying that debt is the fed raises rate, doubles, that's a 20 % whack off the earnings. Yet, if the cost triples, it's a forty percent whack off of earnings. What do you thinki's going to happen to that stock