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IMO these types of companies never had a future. They only succeeded because of monetary inflation in the corporate sphere due to ultra-low interest rates. If
by cryptica 7y ago
IMO these types of companies never had a future. They only succeeded because of monetary inflation in the corporate sphere due to ultra-low interest rates.
If the interest repayment on a bank loan is less than 2%, then it means that any business which can make more than 2% profit on their activities is profitable. But do such businesses deserve to exist? The Fed sets the interest rate so they decide what kind of business is profitable and is allowed to exist.
It's obvious why the current economy has benefited tech companies that operate at high scale with ultra-low or close to 0 profit margins.