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To: Elroy Jetson who wrote (98904)1/5/2008 9:26:16 PM
From: neolibRead Replies (1) | Respond to of 306849
 

Everything which can be created through borrowing could just as well have been facilitated through equity investment.

The "magic" of debt is way over-sold in the society we live in.


Equity investment typically has much different ownership implications. Does not have too I suppose, but generally does. If I have a really great product idea, I might much prefer to have 100% ownership of that idea, and shoulder some debt to make it happen. Most small businesses are in fact started by self funding & debt rather than equity investment, which is more intrusive in terms of operation.