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We are in/at the start of an actual financial crisis, people just haven't internalized that yet.
by scottmcf 7y ago
We are in/at the start of an actual financial crisis, people just haven't internalized that yet.
- mywittyname 7y agoWho could have known that using debt to purchase back stock for the purposes of artificially increasing company value without building value would cause a crisis?
- skybrian 7y agoIt would be bad if they needed cash and couldn't borrow, but on the other hand borrowing just got cheaper. What evidence is there that companies who previously bought stock and issued debt are low on cash?
- asaph 7y agoI'll bite. How can you tell?
- toomuchtodo 7y agoThe entire world is about to have a supply chain disruption that you can't stoke into recovery using central bank policy. The Fed rarely lowers interest rates without notice. They're spooked.
- asaph 7y agoWhat if this supply chain disruption is short term, and the world returns to business as usual soon?
- toomuchtodo 7y agoThat is a possible scenario, but not what market participant behavior is predicting. So, you either believe governments, or you believe the flow of trillions of dollars through the capital markets. The truth likely lies somewhere in the middle, waiting to be discovered.
- AnimalMuppet 7y agoThen you drop rates only for the short term, and return the rates to their previous value soon.
- airstrike 7y ago> The Fed rarely lowers interest rates without notice. Just to play devil's advocate, the world also rarely has an epidemic of this magnitude...
- deleted 7y ago[deleted]