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For the most part people take on leverage because they think they can get more value out of the money than the interest they'll owe on the debt. That's not how
by julienb_sea 6y ago
For the most part people take on leverage because they think they can get more value out of the money than the interest they'll owe on the debt.
That's not how people in poverty view or use debt. But we are talking about global debt holdings. When zoomed out to the global scale, the VAST majority of debt is owed by large scale entities and it is pretty incoherent to describe that as a transfer from the wealthy to the poor.
- imtringued 6y ago> For the most part people take on leverage because they think they can get more value out of the money than the interest they'll owe on the debt. Yes, the idea is that you expect to invest the money into something productive. At low interest rates the bar for "productive" is really, really low. Most companies just play around with stock buy backs.