This works great until it doesn’t. Interest rates are rising and debt isn’t as cheap as it was. At some point it will be unsustainable but we just don’t know when. I fear that we will push the limits on this until it’s too late.
This doesn't affect old debt unless it needs to be refinanced. Only new debt. Plus, interest rates will most likely not be 5-6% within the next 12-36 months.
Will they be higher than they were at 0.25%? Yeah, probably. But isn't a 2-3% interest rate "healthier"? It provides alternative investment options instead of "let's all pile into equities even though valuations are already detached and the entire market is trading at 35.96x (which it was at Jan 1, 2021)"
That's a really big unless. That's the whole point.