ITM Trading Podcast cover image

DEBT, INTEREST RATES & ECONOMICS...Q&A with LYNETTE ZANG

ITM Trading Podcast

00:00

The Federal Government Can't Afford a Higher Federal Funds Rate

With interest rates at zero, you can take on a lot more debt for the same amount that it costs you to vis higher interest rate debt. But what happened was that corporations just accumulated more debt instead of retiring and paying off that old debt. The problem is, is that these corporations now have to roll over the debt at a higher interest rate, which costs them more. And if you realize that they can't pay it, then you're going to demand even higher interest rates. So much of that debt should have been graded as junk quality under normal circumstances.

Play episode from 10:02
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
 Get the app