The NCAA is…What, Exactly?
Slate Money
00:00
The Implications of Bankruptcy for Companies
The Fed is ultimately in a perfect economic model trying to slow the economy without causing a recession or a serious recession. The rising rates cause a reduction of economic activity. If you have a number of companies defaulting and also if they do that, that means that their cost of capital is going to increase. They are now a risk, they have, or they were a riskier company, they just defaulted. Their ability to grow, their ability to hire, all of these things are impacted. On top of that, there's a connection between credit and the real world.
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