Garett Jones  

The Wisdom of Commenter Greg G

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Is the Georgist Single Tax Pig... Welcome Back, McArdle...

Of course this would raise capital costs. That is a feature, not a bug. We have seen the results of underpricing credit risk.

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COMMENTS (4 to date)
Norman Pfyster writes:

It would raise the cost of capital by changing the legal structure of bankruptcy. I'm not certain how that would qualify as wise.

Shayne Cook writes:

Do you or Greg have any estimation/postulation of how much Speed Bankruptcy would raise debt capital costs?

(I do.)

Greg G writes:

The markets would and should determine how much debt capital costs would rise and they would vary as markets always do. If you have a better idea than most people of what these markets will do in the future that should be very profitable for you.

As always, investors will end up choosing from the choices actually available to them, not from the choices they wish were available.

Shayne Cook writes:

Thank you, Greg.

That's not only an answer to my question, it's the one and only correct answer to my question!

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