We often hear complaints that businesses cannot afford to borrow money, yet interest rates offered to lenders are below the inflation rate, indicating that real interest rates are negative. Thus borrowers are repaying less than they borrow.
Businesses that that can't afford to repay what they borrow must be destroying value, instead of creating it, and shouldn't be in business at all.
Subscribe to:
Post Comments
(
Atom
)
No comments :
Post a Comment