There’s nothing wrong with using a little bit of borrowed money to finance purchases. For businesses, financing with debt is cheaper than financing with equity.
One of the things that’s dragged on the economic recovery was the deleveraging of consumer and business balance sheets.
However, that trend has reversed notably.
“The Fed’s weekly bank lending data (released Friday) shows a continued acceleration in credit growth in the first two weeks of 2015, see chart below,” Deutsche Bank’s Torsten Slok said.
“The US economy continues to look stronger and stronger.”