It seems that we keep hearing more and more about the fact that AA has $20 billion in debt.
So?
AA also has a yearly revenue of about $20 billion.
They have even more in assetts.
Its not so much the number that makes a difference but the terms.
Look at it this way, how much debt do you have and compare it to your annual income.
Is your total debt more than your annual income?
If you bought a home within the last ten years then your mortgage debt alone is probably much greater than your yearly income.
Another thing you must remember is that corporations are entities designed to create wealth for its owners, not just for itself. So unlike yourself, corporations create wealth to be dispersed to its owners.
So?
AA also has a yearly revenue of about $20 billion.
They have even more in assetts.
Its not so much the number that makes a difference but the terms.
Look at it this way, how much debt do you have and compare it to your annual income.
Is your total debt more than your annual income?
If you bought a home within the last ten years then your mortgage debt alone is probably much greater than your yearly income.
Another thing you must remember is that corporations are entities designed to create wealth for its owners, not just for itself. So unlike yourself, corporations create wealth to be dispersed to its owners.
