GOOD DEBT VS. BAD DEBT
Posted by Steve Markowitz on August 3, 2014
Over the years this Blog has written about the problems caused to businesses, the economy, and greater society emanating from the over usage of leverage; i.e. debt. I have just published a book, Good Debt, Bad Debt and a Better Way Forward, that not only exposes the hazards of excessive debt, both private and sovereign, but also shares a real life experience creating a successful business without over leverage.
There are two basic long-term approaches to running a business: You can run it on what it earns or you can run it on debt. Debt can be a beneficial financial tool if used to finance increased productivity and growth. However, it is too often used to finance short-term gain for a few at the expense of the greater entity.
Business is about experience, winning and losing. Good Debt, Bad Debt and a Better Way Forward is about creating and doing business without resorting to excessive debt, while growing a successful entity implementing that philosophy.