I keep reading about the national debt, then consumer debt, etc.
I probably should worry, but I am getting up there in years, so I find it hard to worry too much about things in the future... I have no control of.
A few things that seems to be overlooked, are corporate debt, municipal and state debt.
When the time comes for corporate debt to be rolled over, the interest rates will certainly weigh on earnings. Fine, they can raise prices... if the consumer market will bear the increase. I won't even bring in the topic of new debt, to finance some innovative product or expansion. That will also cost more in interest.
Of course, we have state and municipal debt. In most of these cases a balanced budget is required. Any additional costs due to increased debt service, whether from roll over bonds or new bonds, must be budgeted... and the budget must be balanced.
Of course, newer sources of revenue will be sought (new taxes) as well as potential increases in taxes.
I'm sure the consumer will gladly pay for this, just as they will merrily pay for corporate price increases.
Soooo... when your eyes roll and cloud up over discussion of treasury rates and home interest rates, don't forget the host of other things happening.
Everybody is borrowing and you wonder who might be paying. Open your eyes... you know the answer.
PAY ATTENTION!!!
