Quote:
Originally Posted by heep223
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.
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Generally, incremental consumer debt is used by most consumers who aren't dedicated up ROI. Commercial interests are almost solely focused on investing and getting returns that a more expensive house, new car or new TV just aren't.