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Fundamentally, the underlying inspiration for these huge infusions is debt. On the microeconomic scale, it will take a long time for Airbnb to generate $3.5bn i
by cft 10y ago
Fundamentally, the underlying inspiration for these huge infusions is debt. On the microeconomic scale, it will take a long time for Airbnb to generate $3.5bn in profit, that has already been put into it. On the macro scale, tens of trillions of US debt make zero interest rates possible, which in turn creates a lot of fake money looking for returns on investment.
- ryporter 10y agoFundamentally, the underlying inspiration is the growth of these companies. The fact that interest rates are so low, and that investors are chasing yield elsewhere, helps to enable it. However, these deals would still happen even if debt were more expensive. On the other hand, if the company weren't showing promising growth, then the deals would not happen.
- cft 10y agoGood luck!