Clip

Discussion on Credit Markets and Consumer Credit Bubble
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20:23 - 25:43 (05:19)

The cost of capital for debt in the market has risen to 14%, leading to a discussion on mispricing and a potential looming credit crisis. While labor participation is low post-pandemic, companies are focusing on maximizing short-term free cash flow which leads to cutting operational expenses and taking on credits, likely leading to a consumer credit bubble.

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