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Well, zero interest rates from federal reserve definitely allow such businesses to flourish. Where you try to corner a market with infinite money for a monopoli
by legolas2412 6y ago
Well, zero interest rates from federal reserve definitely allow such businesses to flourish. Where you try to corner a market with infinite money for a monopolistic position.
- tylerhou 6y agoStartups don't get 0% loans from the federal reserve. Banks "do", but interest rates for unsecured, high-risk startups is well above 0%. Startups get investments from investors, but investors have an opportunity cost. A lower bound on opportunity cost is market index growth, around 7% per year.
- arbitrage 6y agoThat's, like, the whole point of near-zero or zero interest rates, though. It's to encourage exactly this.
- kortilla 6y agoThese aren’t the businesses that have access to 0% interest. Look at Uber bond yields.