Debt Rattle, April 27 2008: Keep Your Eyes on the Bond Market

Stoneleigh: Central bankers cannot prevent a huge increase in risk premiums, which will send rates for all long term borrowing much higher in nominal terms. Against a backdrop of credit deflation, real interest rates will be even higher. There is no safe level of debt to be carrying when interest rates go through the roof and your income becomes uncertain. This is a recipe for sky-rocketing