Corporate Debt

I saw the sign
And it opened up my eyes
I saw the sign
--Ace of Base

Although the size of federal debt grabs much attention, corporate debt is not far behind. As shown by the graph below, corporate debt is quickly approaching $15 trillion and 75% of GDP.

ECON 101 says lower the price of a commodity and demand will rise. So it goes with debt. Like individuals and nations, corporations have been assimilating more debt as rates have been forced lower.

The question nagging the reasoning mind is can this go on indefinitely? And if answer is negative, then what stops it?