Lacy Hunt Quotes on Debts (4 Quotes)

The ratio of corporate debt to gross domestic product (GDP) is at an all-time high, ... And we don't know exactly what corporate debt is because so much has been parked off the balance sheet and hidden. But, even without knowing what the off-balance-sheet debt is, corporations have too much.

In Japan, for example, the debt deflation started in 1990 and price deflation started in 1992 or 1993. That's what we're in for right now.

The country is entering a period of debt deflation, where households and businesses are forced to move funds from spending to debt repayment. This forces down economic growth and reduces inflationary pressures and long-term interest rates.

The problem is, the private sector doesn't have the balance sheet capacity to take on more debt, and the banking system is not in a position to extend more credit. So monetary policy may not work at all.