Financial Times: Interest rate rise: turning point looms for US debt binge
With a $4tn mountain of debt maturing over the next five years, corporate America’s reliance on cheap cash is about to get tested.
With the prospect of steadily higher interest rates in the coming years as the Federal Reserve gradually tightens policy, US companies that tapped global markets for inexpensive finance over the past four years will soon face a different environment.
US corporate treasurers have rushed to lock in cheap borrowing costs in advance of the expected rate rise, refinancing more than $1tn each year between 2012 and 2014, according to Standard & Poor’s.
Update: World Bank chief economist warns Fed to delay rate rise -- Financial Times
WNU Editor: When interest rates go up .... and they will go up .... it will bust government budgets .... especially those with huge debts and financial obligations. The impact of such a move will be massive, and no one will be immune when it happens. If you have an hour to spare, the above video/web cast from the Brookings Institute is spot on.
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