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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (97271)8/19/2002 9:18:25 AM
From: Knighty Tin  Respond to of 132070
 
Ild, The classic definition is the rate less inflation. But Davis was talking mostly about the fact that it is the rate less the growth rate of the co. that is borrowing or the growth rate of the consumer's income who is borrowing. So, his point was, borrowing at 9% when you were growing your co. at 15-20% was low cost borrowing. While borrowing at 5-6% while growing your co. at 2-5% is high cost borrowing.


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