Part 2/11:
In recent years, debt levels have ballooned to historic highs. The U.S. government’s national debt approaches $32 trillion, marking an all-time record. Meanwhile, corporate debt has also hit new peaks, driven by a decade of easy credit. Household debt isn’t lagging behind—is also reaching alarming levels, with data indicating that in 2023, consumers are borrowing more than ever before.
Notably, these debt levels expanded rapidly during 2020 and 2021, coinciding with the lowest interest rates on record. During this period, both consumers and corporations eagerly took advantage of cheap borrowing costs to invest, expand, and, in many cases, buy back their own stock.