Functional Use Of Debt

RE debt is the de facto standard by which all debt:equity decisions should be made. If the asset securing the financing is stable/increasing in net economic value, then long-term, fixed rate financing is valid. If after-tax impact provides net value, this is a bonus, such as depreciation. Thus, autos, pools, and other descretionary purchases should never be long-term financed...and of course, revolving nature of Discover, Chase, other rebate cards will yield 1-2% annually, better than most money market accounts at the moment. Prudent use of debt is good.

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