Aussies have bid up the price of houses to absurd levels using debt. The debt that the mainstream will tell you doesn’t matter. But it does.
December 10th, 2011 | Nickolai Hubble | 4 comments | ContinuedAll Posts Tagged With: "Modigliani-Miller"
Debt and Deficits Do Matter
We are told that for example debt doesn’t matter because if a company takes out a certain level of debt, say a very low level of say 10% debt to equity, that’s irrelevant to the company’s value because the person buying shares in that company can take out 90% debt to equity ratio.
September 9th, 2009 | Dan Denning | 2 comments | Continued
