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>Some propose that the phenomenon of easy credit and low-interest rates make it economically nonviable for a company to act in its longer-term interests. Would
by ummonk 7y ago
>Some propose that the phenomenon of easy credit and low-interest rates make it economically nonviable for a company to act in its longer-term interests.
Wouldn't it be the other way around? High interest rates would increase the discount rate for future value?
- lazulicurio 7y agoI think the idea is that low-interest rates cause investors to push companies to adopt riskier behavior and that easy credit enables said riskier behavior.