well? Well, that's what I'm talking about. So the $4 trillion of debt issued to buy back $4 trillion of stock. And you see what the Fed did this cycle was they took out of quantitative easing, they took $4 trillion of safe assets out of the system. And they left a vacuum for the corporate sector to issue this debt. And this is why it's not about the banks. The banks became regular utilities and were constrained this cycle. Right, exactly. They went to the public. So they were relying on the bond market to fund the corporates. And so right now we have the most stretched corporate balance sheets on record. The corporate debt to GDP ratios is over 50%. You look at corporate debt to sales, corporate debt to deep, but you can normalize corporate debt by any measure you want. You can even strip out the cash, which of course is concentrated among a few companies. The story doesn't change. We have the most over leveraged corporate sector in recorded history. And so the point I was making is (18/57)
You are viewing a single comment's thread from: