I agree on Sonic. If this is such a good business why does he not go to the capital markets and raise equity capital for expansion.
It is called - or used to be called - capitalism for a reason - not debtism.
Your term, debtism, seems to fits our government's, if not society's, present philosophy.
“If this is such a good business why does he not go to the capital markets and raise equity capital for expansion.”
GE capital *IS* the capital markets. I guess your question is debt v equity.
Well, debt is tax-advantaged and stock is punished. As for why not do IPO, and why so much private equity in the past 5 years like this company? Two words: SARBANES OXLEY.
Newt is right on that one.