There is a high risk of ignoring how much money is owed by corporations. If the interest rate rises even by a small amount, many will default. That could bankrupt thousands of businesses and put millions out of work with no income. Bad decisions made when borrowing cheap money will come back to bite when their corporate bonds come to mature. Prof. Wolff asks whether the credit rating agencies should have lowered the credit ratings of corporations due to their level of debt. What will happen if the economy crashes?
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