Strome Business Minute With Dr. Jeff Tanner

We’ve said it before but now others are saying the same – reliance on corporate debt may cause a recession. Yes, we’re already in a recession but global debt surged seven point five trillion dollars in the first half of last year and is expected to be over two hundred fifty five trillion when the final numbers come in on last year – all well before the massive borrowing that is part of the stimulus. If you want to see evidence of the effects of debt in a recession, look at oil companies who can’t pay their loans back. With global GDP likely to decrease by at least three percent, there will be strain on those who are highly leveraged. Companies which didn’t use cash to buy back stock or pay dividends will thrive. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.