Interest Rates a Double-Sided Coin

“Companies are paying the most in nearly a decade for some types of short-term borrowing, the latest threat to the U.S. economic expansion.”

–“Climb in Key Rate Pinches Borrowers”; The Wall Street Journal (3/28/2018).

Funny, I would have put a different¬†spin on the news that companies — many enjoying record profits — now have to pay higher interest rates.

My take:

“In a sign of continued recovery from The 2008 Crash, almost-free money — courtesy of the Federal Reserve — is going away.¬† As a result, yield-starved savers are actually being paid a return to lend their money, and corporations are learning to wean themselves from too-cheap debt.”

Which version do you like better??

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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