Friday, March 20, 2015

The Corporate Sector Is Flush with Debt

March 2, 2015
CNBC Exclusive: CNBC Transcript: Duquesne Capital Management Founder Stan Druckenmiller Speaks with CNBC's Kelly Evans on "Closing Bell" Today

Well, we have-- we do have too much debt. And we particularly have a lot of debt in the corporate sector. And that's why some great minds don't want to raise rates here, because the debt is so large. But when I look at the healing that's taken place, again on a risk/reward basis, if you don't raise rates now, the debt's just going to continue to accelerate at the pace its gone the last two years, and it would be much greater. But of course whenever you raise rates-- with this much debt around, there's a concern. I frankly think the market can handle it, but that's why there are markets. I might be right, I might be wrong. - Stan Druckenmiller

No worries. All our debt problems are behind us. And to put us in the right frame of mind, let's all hold hands and sing Kumbaya.

7 comments:

Stagflationary Mark said...

Do you know what I like most about the Fed? Consistency.

Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein

1. Inflate the bubbles because they must.
2. Pop the bubbles because they must.

Economic stability, baby. That's what I'm talking about.

Rob Dawg said...

She does look a bit like a hobgoblin.

Stagflationary Mark said...

Bankshee: Starts a yellin' if banks be dyin'.

Rob Dawg said...

Come buy bonds, my Lord, Come buy bonds;
Come buy bonds, my Lord, Come buy bonds;
Come buy bonds, my Lord, Come buy bonds;
Oh, Lord, Come buy bonds.
Someone's sellin', Lord, Come buy bonds;
Someone's sellin', Lord, Come buy bonds;
Someone's sellin', Lord, Come buy bonds;
Oh, Lord, Come buy bonds.
Someone's hedgin', Lord, Come buy bonds;
Someone's hedgin', Lord, Come buy bonds;
Someone's hedgin', Lord, Come buy bonds;
Oh, Lord, Come buy bonds.
Come buy bonds, my Lord, Come buy bonds;
Come buy bonds, my Lord, Come buy bonds;
Come buy bonds, my Lord, Come buy bonds;
Oh, Lord, Come buy bonds.
Come buy bonds.

Stagflationary Mark said...

There's a tear forming in my eye. All that bond love and so few places for it to go! ;)

James said...

Thnaks for posting that-- it's a good quote from Druckenmiller. Also, I chuckled at "Flush with Debt."

Stagflationary Mark said...

James,

Corporations have never been more "comfortable and absorbant". It's all a part of the 2-ply economy. They sure are cleaning up! Just wish there was more air freshener, lol. Sigh.