Danaos Corp (DAC)

[unevilfavouredness]

You're correct, but for one other reason as well. Rapid inflation globally will mean that debt is worth more than cash. THe proof was in what I called an inflation-debt-GOLD PLAY". Senator McCain touched on this in his SNL skit. The fact is that we could have taken a loan for $850,000.00 12 months ago for 1 year at 10% (8,500.00) interest, bought gold for AU$850/oz and sold that gold last week for AU@$1070/oz. That is $220,000.00 revenue and after taxes and interest of $120,000.00 paid off that's about $100,000.00 profit. That's a year's salary. Even better, if you took out student loans and didn't pay them, the $85,000.00 you borrowed may be greatly insignificant in 10 years because a pack of gum will cost $85,000.00 like 50,000 Peso's for a Snickers bar or 12,212 Yen for a #2 pencil with a no smudge eraser.