Quote:
Originally Posted by Street Pharmacist
I think it's a too big, out too "macro" of a view. This rate drop is good for highly leveraged companies, bad for actual people. More consumer debt is bad. Industrial debt is good
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I don't think that you can just make this claim. While rates dropping is good for highly leveraged companies, they can get into just as much trouble with managing their balance sheets as highly leveraged consumers do, if and when the business cycle changes.
I think you could say that smart, manageable debt has the potential to be good for both consumer and business, but generally speaking too much debt for either is bad.