One is the heavy debt with which Olivetti would saddle Telecom Italia, and on which it would have to pay a high rate of interest.
If you look at the data, about 49 percent of homeowners have one measure of vulnerability: high debt payments, high levels of variable interest rate debt, a very high leverage, they own very little of ground homes or they own very little outside of their homes.
This is a shift from the Bank's previous public position, because the governor had previously suggested that liquidity from the Bank should indeed come with "strings attached" in the form of a relatively high interest rate.
Moreover, in a deflation, where prices fall, a low rate of interest can be very high in real terms.
Until earlier this month the Bank of England had been engaged in a cycle of interest rate tightening, which saw the cost of borrowing hit a high of 4.75%, in turn leading to higher repayments for mortgage holders.
Last week, the Financial Services Authority announced that all of the big four High Street banks had agreed to start a complete review of all such interest rate products sold to unsophisticated business clients.
Ms. Basile asserted that the program was deceptive, because, while customers may have understood that payment of a fee was required, they did not apprehend that they actually received a loan, and they did not know the high rate of interest imposed.
There are very few governments in the world who would not find themselves unable to repay their debt, given a sufficiently high interest rate, for a sufficiently long period of time.
As a result, the consistently high interest rate regime has impacted the growth of companies operating in China, particularly in the construction industry.
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Ohio begins a deal today that could help some homeowners get out of high interest rate mortgages.
One complaint already on the Web-site accounted the story of a customer who got duped into an exorbitantly high interest rate on his purchase when the customer service representative lied to him about whether he qualified for the "no interest, no payment" financing.
Of course, it is possible that the Santorums had a high interest rate and finally got around to refinancing in 2010.
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But a prolonged period of sky-high interest rates, which may be necessary to defend the exchange rate, can wreak havoc with a country's banking system.
More than ten years on, the wisdom of the fund's strategy is still in dispute. (If an economy carries a lot of short-term debt, high interest rates may wreak such havoc that the exchange rate collapses anyway.) But whatever its merits during the Asian financial crisis, the high-rate defence has little appeal today.
Even when repayment rates are high, a microfinance institution may charge an interest rate too low to cover its overall costs or its costs of funds, thus making it more of a charity than a commercial enterprise.
Monday's losses followed falls on Friday when high-tech companies also saw the value of their shares drop on fears of a new round of interest rate rises.
Two decades ago, Democratic President Jimmy Carter named Paul Volcker as Fed chairman, ushering in an era of stern interest-rate policies that extinguished double-digit inflation at what was initially a high cost for economic growth.
Instead of continuing to hold a high interest investment, investors are left to reinvest funds in a lower interest rate environment.
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