Charting the Course of the Global Economy
Real Vision: Finance & Investing
00:00
The Importance of Balance Sheets in the Economy
Richard Vedder: I came to this realization about the importance of balance sheets when I was just producing some charts for my presentations. He saw how much Japanese companies were borrowing from the financial market, and they're actually paying down debt even at zero interest rates. When that happens, we really have to change our mindset completely," he says. "That means private sector is not maximizing profits the way we assume the economics"
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