Ten years on from the crash of Lehman Brothers that heralded the Great Recession, market watchers are looking for clues as to where the root of the next crisis might lie. Steve Blitz, chief U.S. economist at TS Lombard, sees a giant red flag in corporations' debt versus their means to pay that debt off. "The real biggest problem lies, if I'm looking at the U.S., I look at debt-to-cash ratios, and I take out the top ten companies," Blitz told CNBC's Squawk Box Europe on Wednesday, noting his exclusion of highly capitalized companies like major tech and pharmaceutical firms who are well-stocked to service their debts. "Debt to cash is very very high, but debt equity is very very low. What that tells me is corporations are borrowing against their net worth, as opposed to borrowing against cash flow and income, which in effect is the same thing households were doing in 2004, 2005 and 2006."
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