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Corporate Debt
There's an interesting AP article in the Morning Call (local paper around here) about mounting corporate debt. The writer says that this stuff you hear about "all the cash on the sidelines" is misleading. He says that corporate America is a lot like America in general, most of the money is held by a few. He said that about three quarters the companies actually have a lot of debt and that is at dangerously high levels. Meaning that any weakening in the economy could cause a stock market collapse. Basically what he was trying to say, the stock market is riskier than many realize right now, but he said that people are putting money it in because of the low interest rates, no place else to put their money.
Does anyone have any opinions on this?
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