What Everybody Got Wrong About the Debt Crisis
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The world still lends money. It just changed how it lends money. Governments everywhere are reshaping their borrowing to fit what buyers will still take. To short-term borrowing. A government borrows money and promises to pay it back on a set day. When that day comes, it rolls the debt forward and borrows again to cover it. Shortening the debt moves those days closer together. The pile does not get smaller. Somebody just has to go out and do this more often. When interest rates rise, this becomes a problem.
Tags: finance, stock market, financial markets, business, business videos, finance videos, debt markets, economics
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