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To: Oeconomicus who wrote (146838)9/4/2002 3:54:58 PM
From: Alomex  Read Replies (5) of 164684
 
As for what "T. Friedman" says, are you referring to Thomas Friedman of the NY Times?

Actually I was referring to D. Friedman, an economics professor.

But I doubt anyone with any credit experience would say that "most" debt is issued with refinancing as it's primary source of repayment.

A word got dropped in the editing process: Most large corporation corporate bonds are issued with the understanding that the principal will never truly be paid. The corporation will simply roll the debt forward as the bonds mature.

In fact, there is a famous paper from Modigliani and Miller which argues that debt and equity can be used interchangeably.
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