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by UltraSane 37 days ago
Debt is generally cheaper because lenders face lower risk. Because debtors hold priority claims on assets during liquidation and receive guaranteed fixed payments, they demand lower returns. In contrast, equity investors require higher returns for taking on higher risks.

Companies also often prefer debt because it doesn't dilute shareholders which issuing new shares would do.

1 comments

Very strong assertions and true, to the extent that we accept Usury as acceptable.

While we are here, please also consider that Protection Rackets also provides similar benefits!

It is funny that usury is so evil in Islam at the same time Islam very clearly allows men to own and rape female slaves, "those whom your right hands possess" (ma malakat aymanukum).

Those slaves being raped must be so comforted by knowing that Islam forbids cash loans at reasonable interest rates.

What the heck this has to do with Islam?

Is Usury some kind of religious values for you?

Yes, it is forbidden by Islamic law so it is very much a religious issue for Muslims.
It is also forbidden for Jews and Christians. You sound like you have a personal issue with this topic.
Whataboutism
Maybe, but it is a very inconsistent moral code that considers cash loans at 5% interest evil while raping a slave is perfectly acceptable.