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Economies biased towards debt are more prone to crises, because debt imposes a rigid obligation to repay on vulnerable borrowers, whereas equity is expressly designed to spread losses onto investors.
The success of the Small Business Administration's efforts are viewed primarily in terms of the pool of professional private equity investors that the program developed as the rigid regulatory limitations imposed by the program minimized the role of SBICs.
But firms' and families' financial assets are not bound by such rigid terms: deposits can be withdrawn with little notice, bonds and equity can be sold quickly if cash is needed or if investment tastes change.
It is rigid.
You get rigid.
Rigid but flexible.
Retirement scares him rigid.
Hierarchies can be rigid.
The market is rigid.
No rigid chairs.
Rigid and conformist?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com