The U.S. Economy's Vulnerabilities

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America’s smallest companies tell us a lot about the economy’s vulnerabilities. So far, they have been resilient in the face of rising borrowing costs.

Recession watchers should be careful about jumping to conclusions over the rise in small-business bankruptcy activity. 

Smaller firms' exposure to variable-rate debt may well make them a leading indicator for the American economy, but so far they're mostly sending a message of resilience. And that may well mean that the US economy can continue to stay afloat as well.

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