When suppliers finance buying groups "you get the tail wagging the dog," Mr. Nelson said.
That may no longer be the case: bankers have been falling over themselves recently to finance buy-out deals.
The European Central Bank opposes such an outcome, arguing that, by allowing the European bailout fund to finance buying back Greek bonds at market rates, private bondholders would be involved, as Germany wishes, but without a risk of default.
Since interest paid on debt is tax-deductible, whereas interest earned on cash is taxable, by increasing its net debt to finance buy-backs or dividends, a firm cuts its tax bill.
"Lower inflation means people have spent less on essentials and this, coupled with higher earnings and lower mortgage rates, means households in most parts of the country were left with more money with which to finance buying a home".
Citigroup, which financed the buy-out with loans totalling £2.6bn, denies Terra Firma's allegations that Mr Wormsley or the bank lied to or tricked Mr Hands.
The question is: would there have been financing to buy even Magic Markers?
Industry watchers say the deal that could help finance the buy of Hughes, which owns U.S. satellite broadcaster DirecTV possibly in a joint move by the media leviathans.
Those at more troubled companies are trying to restructure their finances, buying time for their businesses to recover.
Finance buys things while they are still expensive and cutting-edge, and the rest of us get it later, once the prices come down.
But weaker companies which habitually borrow at home to finance buy-backs may risk a liquidity crunch if debt markets dry up and they cannot rapidly get their paws on cash stashed abroad.Some critics' main beef about the buy-back boom is that it is leading firms to skimp on long-term investment.
