Leverage

Post #67,532 by bepatient 12/9/02 11:39:48 AM Reply	Leverage More to box's point....its not the debt that matters...a certain debt level is actually >good< to carry...its the economy's ability to sustain that level of debt. In that light..our debt is "within acceptable limits". It may be high in sheer dollar terms...and even high in terms of overall leverage...but we maintain the ability to service that debt. And our credit is still decent...thus we can continue to cycle debt. If we hit triple c in the world credit market...we're in trouble. You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #67,578 by mmoffitt 12/9/02 1:48:55 PM Reply	Nah, that's what the nukes are for.
Post #67,591 by bepatient 12/9/02 2:30:22 PM Reply	Novel approach to calculating a D/E ratio, I suppose. You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #67,609 by ben_tilly 12/9/02 3:27:36 PM Reply	But note... If we hit triple-C in the world credit market, then the whole world would be in trouble, not just us. There are a lot of people with a large vested interest in keeping the current status quo working... Cheers, Ben "Career politicians are inherently untrustworthy; if it spends its life buzzing around the outhouse, it\ufffds probably a fly." - [link\|http://www.nationalinterest.org/issues/58/Mead.html\|Walter Mead]
Post #67,655 by mmoffitt 12/9/02 6:48:29 PM Reply	Yes. We have quite the pyramid scheme going, don't we?
Post #67,690 by bepatient 12/9/02 9:34:26 PM Reply	Think you may need to revisit some definitions. and maybe your public and corporate finance texts. Debt is by design. You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #67,718 by mmoffitt 12/9/02 11:49:05 PM Reply	Happily I majored in Mathematics. Pure mathematics, that is. If it smelled liked an application (and I do mean smelled) I avoided it like the plague. Hence, I did not have "corporate finance" books in my curriculum. I'm just a poor old dumb North Carolina boy who was taught that a "debt" was something that you eventually paid back. Or else you declared bankruptcy, which is akin to conceding that you failed. ;-)
Post #67,759 by bepatient 12/10/02 6:39:33 AM Reply	Well it is! But when you have lots of collateral...you can take out alot...and you can stagger it so as to have alot out all the time. And when you're a business there are people who calculate the "correct" amount of debt for you to carry. Methinks you know these things already ;-) You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]

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