We all seem to be preoccupied with the thought of debt burdens and their impact on the markets by being constantly reminded,
"wait until interest rate rise." I remember my mom threatening me with a similar slogan to modify my perpetual misbehavior with,
"wait until your father gets home." Here's an interesting article and perspective that isn't often discussed:
"In an environment of zero or near-zero interest rates, creditors have an incentive to “extend and pretend” – that is, roll over their maturing debt, so that they can keep their problems hidden for longer. Because the debt can be refinanced at such low rates, rollover risk is very low, allowing debtors who would be considered insolvent under normal circumstances to carry on much longer than they otherwise could. After all, if debt can be rolled over forever at zero rates, it does not really matter – and nobody can be considered insolvent. The debt becomes de facto perpetual."Money for Nothing
