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Artificially low interest rates, government entities buying corporate bonds for 'liquidity' (aka, bailing out the banks that shouldn't have ever made the loans
by linuxftw 7y ago
Artificially low interest rates, government entities buying corporate bonds for 'liquidity' (aka, bailing out the banks that shouldn't have ever made the loans in the first place) create the incentives for companies to borrow heavily and artificially boost EPS. There's literally no reason for a company to not do this.
- StillBored 7y agoExcept for like illicit drugs, they become dependent on it. If the supply dries up they are in serious trouble. Building your business on cheap debt seems like really short term thinking...