four ws of a leveraged economy 
The municipal be d market: 
< A Billions of dollars 
Data: Bond Buyer, BW est. 
The financial plight of U.S. corporations 
Debt piles up faster 
than equity... 
Equity per $1 of debt, 
manufacturing 
corporations 
2.0- 
J L_J_J L 
1964 '66 
ADollars 
'63 
I i-L 
’72 6/74 
Est. 
1964 ’66 
A. Percent 
72 6/74 
Data: Securities & Exchange Data: Federal Reserve Board, BW est. 
Commission, Federal Trade Commission 
•Pretax income plus interest Est- 
expense divided by interest expense 
Data: Internal Revenue Service,BW est. 
... and the liquidity 
strain is worsening 
A Percent 
Data: Salomon Bros., Manufacturers 
Hanover Trust Co. 
Mario De Vincent!s—BW 
I 
I 
The corporate borrowing binge 
1964 ’66 ’£8 70 72” 
j Long-term debt represents bonds, mortgages; 
short-term debt represents bank and finance 
company loans, commercial pap«r, bankers’ 
acceptances, government loans 
'Seasonally adjusted annual rate 
Data: Federal Reserve Board 
Ndi cash borrowed by 
nonfinancial corporations 
Mario Lie vmceruis—BW