Unless a sharp uptick in confidence sweeps through the markets, higher rates will cascade across less-solid companies, if they can get hold of cash at all.
The scary part is that few companies have the same financial cushion as GE. And as their borrowing costs increase, they will have to scramble to cut their fixed costs.
And what is the No.1 cost of business? People.
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A smart, comprehensive prediction by WSJ of an impending round of layoffs. Backed by sound evidence of past economic vagaries and written in a way palatable to the normal news consumer.
Does this prove anything? It's an anecdote from one company at one point in time. Things may get better rapidly without bailouts. If GE is so wonderful why would people be leary of their paper?
A very good article. One missing point: how much is the 0.4% is compared to typical market fluctuation. Is this very different from the Fed raising interest rates by 0.5%? Why not?
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