if there are assets to put up as collateral, then debt is cheaper than equity. hard to see the point of this? also, debt is leverage, it leverages you, you don't leverage it.

Debt is the main culprit in any bubble.

It is very hard for the financial system not to compete to gorge on massive multi-year debt opportunities.

And we have clearly hit the phase of 2nd order borrowing: where market caps are responding positively to borrowing and spending, encouraging more.

And 3rd order: Where the companies that "successfully" borrow and spend more are viewed as relatively more dominant, so burning money becomes a 3x motivated survival mission...

Any system that increased borrowing costs for leveraged market caps across an industry (i.e. caps with high multiples, growing quickly), would actually benefit all the players. A kind of across the board arms control, that didn't dampen competition, but made it safer.

For the players, and everyone within their financial blast radius, which in this case is global.