“The higher your debt levels, the harder it is to service your debt,” says Taylor. By comparison, corporate debt in the U.S. is at $15.5 trillion (U.S.), amounting to 74 per cent of GDP. Bombardier, the Montreal-based transportation manufacturer, has more than $9-billion (U.S.) worth of corporate debt. These still-escalating corporate debt levels may threaten the entire economy, many economists warn. Which may mean “we’re heading back to the same federal debt to GDP ratio we faced in 1992,” when the federal government was forced to drastically cut spending on public programs across the board to service and pay down the federal debt.

Source: thestar July 04, 2020 11:05 UTC