Indeed, during recession Federal borrowing does not crowd out private investment because corporations aren't borrowing very much.
It has been unable to raise money in the commercial paper market, where major corporations lend and borrow among themselves.
For years, economists wondered why corporations did not borrow more.
In 1988, the corporation borrowed $1.5 million and raised the maintenance.
But today, many corporations can borrow at better rates than the banks themselves.
In addition, the rates at which corporations borrow have not increased as much as Treasury yields.
All major corporations, even highly profitable ones, borrow money to finance their operations.
For example, a corporation borrows a large sum of money at a specific interest rate.
The second problem is that while the federal government is generating budget surpluses, both individuals and corporations are borrowing in record amounts.
Similarly, borrowing in the commercial paper market - where corporations borrow and lend among themselves - is at best steady.