Americans are carrying less personal debt as a percentage of their income than anytime since the 1990s, Cohen said. Large corporations have excess cash thanks to strong fundamentals and because they’ve been able to borrow money in an environment of low interest rates.
Moreover, the U.S. has been reducing its debt relative to its growth domestic product during the past few years. She noted that debt was 4% of GDP for the fiscal year that started in October compared to an 11% ratio in 2008.
Douglas A. McIntyre