This situation is often referred to as the “balance-sheet problem”. When we look at the relationship between balance sheets and business fixed investment by sector and by the size of firm, large manufacturers are faced with only limited balance-sheet adjustment pressures since they did not take on large debts during the “bubble” period.
In certain industries, including the financial industry, rapid technological change can lead create risks as well as opportunities. Political risk is also evolving; it’s moving into developed countries. I’ve just returned from meetings in South Africa with African central banks.