Debt's Cost Rises as Interest Rates Shift

The period of low interest rates encouraged excessive borrowing among governments, corporations, and private equity managers, enhancing their financial positions superficially. However, as interest rates increase, the implications of this debt accumulation necessitate a reevaluation of financial strategies. In historical contexts, nations often resorted to accumulating more debt to manage crises, as seen during significant wars and during the pandemic. The current environment poses a challenge to this cycle, prompting critical reflection on sustainable debt management.