Businesses are in for a mighty debt hangover

It has been a jittery few months for the economies of the West. First came the nerve-rattling crisis in the banking sector. Then came the as-yet-unresolved prospect of a default by America’s government on its supposedly risk-free debt. Many now fret over what other hidden dangers lie in wait.

An understandable area of concern is the hefty debts racked up by non-financial companies in recent decades courtesy of low interest rates. Since 2000…