First of all, Cringely is right on the first part. IBM, and many other companies, are taking advantage of the low rate environment to borrow money and buy back stock. This is capital structure optimization, and many companies do it. He is tongue is cheek about the problems being the Fed's fault.

There are impacts to this policy. By borrowing to buy back equity, you are increasing the chance of distress. You don't increase your cash position, but you do increase the amount of interest payments you have to it. (Albeit less due to the low rate environment) This means it is more difficult to bet on anything that isn't a sure thing.

That said, perhaps this is the best way for shareholders to wind down a company that can no longer innovate. At some point, large companies can cease to be innovative, and cease to profitably handle acquisitions. Then what? Especially if you're too big to be bought out yourself.

There are two options... One - Split yourself up and sell the parts to the highest bidders. Two - Buy back the shares. Shrinking the outstanding shareholder base will increase the per-share value even if the total corporate value is flat. Rather than waste money on innovation (if you can't) or M&A (if you overpay and underintegrate) better to give it back to the shareholders and let them invest capital in companies that can grow.

Borrowing to buy back shares is just taking case #2 to the extreme, and ultimately passing the buck to the long term bond holders.