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> The economics are no different than a shop keeper getting a loan at .05% to pay himself. > the actual action in and of itself makes no sense from a business
by JoshuaDavid 7y ago
> The economics are no different than a shop keeper getting a loan at .05% to pay himself.
> the actual action in and of itself makes no sense from a business perspective.
At 0.05%, I'm pretty sure almost any business owner would take that loan, because if there's anything that can return more than 50 cents per year per thousand dollars invested in profit or avoided losses (e.g. solar panels or an ad campaign or a camera system to prevent shoplifting or whatever) that 0.05% loan is free money. I would happily take a loan at 10 times that interest rate for as much money as you wanted to loan me.
- supercanuck 7y agoBut they took that money to PAY themselves. Making any of the reasons you stated above would make sense, but that did not happen
- JoshuaDavid 7y agoMoney is fungible. They would have paid themselves with or without a loan, so the money they would have used to pay themselves if they hadn't gotten a loan can now be invested.