lbo-talk-digest V1 #5488

Seth Ackerman sia at nyc.rr.com
Thu Jan 3 17:45:54 PST 2002


Daniel Davies wrote:


> Being fair, the USA goes into this one with substantially lower nominal
> interest rates than were the case at the beginning of any of those
> recessions. Balance sheet gearing matters in prolonged real downturns,
but
> what sends people and firms into financial distress is cashflow.

But long rates have been drifting higher lately. What if the reason for it is that the bond market forsees a dollar depreciation? What if the dollar slowly slides for the next few years? Wouldn't that drive up long rates even further?

Seth



More information about the lbo-talk mailing list