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Recent changes to the debt system (Kebir Blue)

Simcountry: Simcountry Bulletin Board  Recent changes to the debt system (Kebir Blue)

Khusru Anushirvan

Tuesday, December 21, 2004 - 09:32 pm Click here to edit this post
They seem to be shutting down corps long before the leverage hits that high, or at least the messages threaten so. So why are interest rates so low, and why should a firm with a 3% interest rate run out of debt capacity? IBM's debt runs just 2/3 of annual income, but they don't have a 50% ROI.

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