Economist Rosenberg Warns Spread Between CCC, BB Is 'Canary in Coal Mine'

The video discusses the prolonged economic cycle fueled by easy money and corporate bond issuance, leading to financial engineering and stock buybacks. This has inflated stock valuations, creating a disconnect from the real economy. The risks associated with corporate debt, particularly for non-bank financial institutions, are highlighted. Despite accommodative financial conditions, economic growth remains sluggish, with no significant acceleration observed globally.

What factors have contributed to the current state of corporate bond issuance?

How have stock buybacks influenced earnings per share in the context of the current economic cycle?

What is the significance of the spread between triple C's and double B's in the corporate bond market?

In what ways do financial conditions impact the real economy according to the discussion?

What evidence is presented regarding the relationship between financial conditions and economic growth?