The "Crazy Growth In Corporate Debt" Is Finally Noticed: Bloomberg Issues Stark Warning
![The "Crazy Growth In Corporate Debt" Is Finally Noticed: Bloomberg Issues Stark Warning The "Crazy Growth In Corporate Debt" Is Finally Noticed: Bloomberg Issues Stark Warning](https://5ux.com/sites/5ux.com/files/styles/medium_250/public/resize/remote/d7f2a07ae045f7efa4a3a05c5f3cb22d-600x429.jpg?itok=MkCdRU2J)
By now it is a well-known fact that corporations have no real way of generating organic profit growth in this economy (the recent plunge in Q1 EPS was a stark reminder of just that), so they are relying on two things to boost share prices: multiple expansion (courtesy of central banks) and debt-funded buybacks (also courtesy of central banks who keep the cost of debt record low), the latter of which requires the firm to generate excess incremental cash.