, Columnist
Risky Reprise of Debt Binge Stars U.S. Companies Not Consumers
- Corporate borrowing has ballooned by $2.8 trillion since 2009
- Profit pinch puts companies in a more precarious position
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Consumers were the Achilles’ heel of the U.S. economy in the run-up to the last recession. This time, companies may play that role.
Among the warning signs: rising debt, lagging profits and mounting defaults. While the financial vulnerabilities aren’t likely to lead to another downturn soon, economists say they point to potential potholes down the road for an expansion that’s approaching its seventh birthday.