This would be a great theory, if the facts in anyway supported it. The counter-examples in the data are not hidden, however: US government @ $1T per year in

This would be a great theory, if the facts in anyway supported it. The counter-examples in the data are not hidden, however: US government @ $1T per year in defecit. Fed in third phase of QE (money printing). These policies are meant to prevent debt write-offs (reductions in par value). And are a giant subsidy to lenders at the expense of debtors and taxpayers. Business risk currently has only orthogonal corrleation with debt pricing (or, by extension, pricing any part of the capital structure...including equity). See for example: http://dealbreaker.com/2012/08/lets-spot-a-high-yield-bubble/ http://dealbreaker.com/2012/08/lets-spot-a-high-yield-bubble... tl;dr http://cdn.dealbreaker.com/uploads/2012/08/MattKing2-620x439.png http://cdn.dealbreaker.com/uploads/2012/08/MattKing2-620x439...